Is Declaring Bankruptcy worth Reduction of Your IRS Tax Bill?

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I was raised to pay the IRS whatever I owed them. After all, our tax dollars maintain roads, bridges, and other important components of USA infrastructure.

That is why I was shocked to see the following tax10000 TV commercial  allowing scofflaws to pay ONLY a small fraction of their IRS bill!

One unaccountable United States citizen owed the government $87,000 but reached a settlement of only $3,500 apparently negotiated by Tax10000.com. I heard that you may have to declare some form of bankruptcy to avail of their service AND their fee usually exceeded what the broke taxpayer settled for. This, obviously, still saves delinquent taxpayer a lot of money, but kills their credit score or any possibility of securing a home mortgage.

See the list below of actual tax owed compared to what debtor actually paid IRS.

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4 comments on “Is Declaring Bankruptcy worth Reduction of Your IRS Tax Bill?Add yours →

  1. Many Tax Relief Firms are crooked and not forthcoming about how much your credit score will be ruined or how long it will be so low that you will have to live in roach infested apartments until your score can legally come back up in 7 years.

    JG Tax Group was honest with us and one of their associates told us the good and the bad and charged us very reasonable fees. Their lawyers know the IRS tax code like the back of their hand! Thank God my wife managed to find them.

    It took time but they negotiated with IRS and I paid almost 6K less than the IRS notices mailed to me had said I owed. That was after JG had deducted their fees! I had gone 7 quarters without deducting payroll taxes because my wife was ill and they still managed to get a favorable resolution with the IRS who is much more understanding than their reputation.

    1. I panicked when I received a notice from IRS. Am self employed and thought I was being audited! I have a staff of just 3 employees and was extremely worried about them as they took a risk hiring on with me.

      It turns out it was nothing to do with my import/export business, but my ex husband’s Tax debt which they were deducting from me(cp42) I was more pissed at him than IRS who was legitimately trying to collect what my original family owed them jointly. I took care of it myself by following the clear instructions on notice. Never had to involve tax professionals.

      My notice was in this list that I found at IRS web site:

      CP 12 – The IRS made changes to correct a miscalculation on a return. CP 14 – First notice that a balance is due. CP 31 – A refund check was returned to the IRS. Need to update address. CP 42 – The amount of a refund has changed because the IRS used it to pay a spouse’s past due tax debt. CP 49 – All or part of a refund was used to pay a tax debt. CP 90/CP 297 – Final notice — notice of intent to levy and notice of the taxpayer’s right to a hearing. CP 91/CP 298 – Final notice before levy on Social Security benefits. CP 161 – Request for payment or notice of unpaid balance. CP 501 – First reminder notice that there is a balance due. CP 503 – Second reminder notice that there is a balance due. CP 504 – Final balance due notice. If amount is not paid immediately, the IRS will seize (levy) a state tax refund and search for other assets to levy. CP 523 – Notice of default on installment agreement and imminent seizure (levy) of assets. CP 2000 – Notice of proposed adjustment for underpayment or overpayment.

      1. A buddy of mine got audited when he claimed Schedule C expenses once for his ” home based” business. He fudged quite a bit telling IRS his expenses were 10 times more than the gross income earned by his “day care business” which was more of a hobby helping neighborhood kids with recreational scooters etc. Basically he was representing non-deductible personal expenses as deductible business expenses.

  2. Don’t have anything to do with Affordable Law, PC in Albuquerque NM! Lawyer Leshin

    Our wages had been garnished by IRS based on their error! We went through hell and went to the 1128 Pennsylvania address. They specialize in bankruptcy, personal injury, wills and trusts.

    We ended up owing them almost as much as we owe Uncle Sam and IRS is still garnishing our hard earned money straight from paycheck before direct deposit is made!!!!!

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