A Strategic Approach to Tackling IRS Debt

At Hockett Tax Resolution, our primary mission is to help individuals and businesses resolve their tax problems with the IRS. While we don’t offer bankruptcy services, we recognize it as a legitimate and sometimes necessary tool in the overall strategy to regain financial stability. In certain situations, bankruptcy and tax resolution can work hand-in-hand—and understanding how they intersect is key to choosing the right path.

When Does Bankruptcy Enter the Picture?

Bankruptcy is a legal process designed to provide relief for individuals and businesses overwhelmed by debt. While many think of it as a last resort, in some cases, it can be part of a larger financial reset strategy, especially when IRS debt is just one part of a much bigger problem.

Bankruptcy can discharge certain tax debts, but not all. And this is where working with a seasoned tax resolution specialist—like our team at Hockett Tax in Peoria, AZ—makes all the difference. We help clients determine whether pursuing tax resolution alone is sufficient or if consulting a bankruptcy attorney might be the best next step.

Tax Debts and Bankruptcy: What Can Be Discharged?

Here’s the good news: some IRS debts can be wiped out in bankruptcy, but they must meet specific criteria. Generally speaking, income tax debt may be discharged if:

• The taxes are from a return due at least three years ago.

• The return was filed at least two years ago.

• The taxes were assessed at least 240 days before the bankruptcy filing.

• There was no fraud or willful evasion involved.

(Always speak with a qualified bankruptcy attorney to determine dischargeability.)

How Hockett Tax Fits into the Puzzle

We don’t file bankruptcy cases, but we regularly work alongside bankruptcy attorneys to ensure our clients have a comprehensive strategy. Our expertise lies in:

• Analyzing your tax history and current standing with the IRS.

• Identifying which debts may qualify for bankruptcy discharge.

• Negotiating IRS payment plans or settlements (such as an Offer in Compromise) for debts that won’t go away in bankruptcy.

• Ensuring compliance going forward, so you don’t end up back in the same situation.

By partnering with experienced bankruptcy professionals when appropriate, we help our clients explore every viable option, so they can make informed, strategic choices.

Why You Shouldn’t Go It Alone

Navigating IRS issues is already complex—throw bankruptcy into the mix, and things can get downright overwhelming. Whether you’re based in Phoenix, Peoria, or anywhere in the Valley, having an experienced tax resolution expert like Jeff Hockett, EA by your side ensures that your tax issues are properly handled before, during, or after bankruptcy.

We often say, “Bankruptcy might be the reset button—but tax resolution is the steering wheel.” It guides your way back to financial health.

Final Thoughts

If you’re considering bankruptcy or already in the process and have lingering IRS problems, let’s talk. At Hockett Tax Resolution, we’re not bankruptcy attorneys—but we are tax problem solvers who know how to collaborate with your legal team to get you the best possible outcome.

Why Phoenix Residents Trust Hockett Tax Resolution

Jeff Hockett, founder of Hockett Tax Resolution, is an Enrolled Agent (EA) with a deep understanding of the tax code and extensive experience resolving complex IRS issues. Our firm is dedicated to helping individuals and businesses in Phoenix protect their assets and achieve peace of mind.

As a family-owned and operated business, we combine local knowledge with professional expertise to deliver the best possible outcomes for our clients.