Trusted tax debt lawyers serving clients across Tempe, AZ, and the surrounding area for over a decade.

If unpaid federal or state tax obligations have resulted in liens against your property, wage levies, or bank account seizures in Tempe, the outstanding balance will not diminish through inaction. Penalties and interest accrue monthly, and both the IRS and the Arizona Department of Revenue will continue to pursue collection until the debt is resolved.

Wright Law Offices has helped Arizona residents resolve tax debt for more than 10 years. Our Tempe, AZ tax debt lawyer reviews the full scope of what you owe, determines which obligations may qualify for discharge through bankruptcy, and identifies alternative resolution strategies for those that do not. Schedule a free consultation to discuss your circumstances.

Tax Debt Lawyer Tempe, AZ

A tax debt lawyer represents individuals and small business owners who carry outstanding balances with the IRS, the Arizona Department of Revenue, or both. Tax debt operates differently from credit card balances or medical bills. The IRS does not need a court order to garnish your wages. It can place liens on real property, freeze bank accounts, and intercept future refunds to offset prior-year balances, all without filing a lawsuit first.

A Tempe tax debt attorney evaluates the age, type, and dollar amount of each outstanding obligation and determines whether the debt falls into a category that may be discharged in bankruptcy. Certain income tax debts that meet strict timing and filing requirements can be eliminated. Others must be repaid through negotiation or a structured plan. Drawing that line accurately is the most important step in any tax debt resolution case, and getting it wrong can mean paying thousands of dollars toward a balance that could have been discharged.

Types of Tax Debt Cases We Handle in Tempe

Tax debt in Tempe, AZ accumulates under circumstances that differ substantially from one client to the next. A freelance graphic designer falls behind on quarterly estimated payments for two years. A recently divorced parent owes $14,000 from a joint return filed during the marriage. A restaurant owner carries $40,000 in unpaid payroll taxes across six quarters. The dollar amounts and underlying causes vary, but the urgency of the collection activity does not.

  • IRS Income Tax Debt. Federal income tax balances are the most common form of tax debt we see in our practice. Depending on when the returns were originally due, when they were actually filed, and when the IRS assessed the balance, some or all of the amount owed may be eligible for discharge in bankruptcy. We analyze each tax year on its own because a 2018 balance and a 2022 balance can carry completely different discharge eligibility.
  • Arizona State Tax Debt. The Arizona Department of Revenue pursues collection independently of the IRS. State income tax obligations follow their own rules for dischargeability, and the penalty and interest calculations differ from the federal side. We evaluate state and federal balances together. The resolution strategy for one almost always affects the other.
  • Payroll Tax Obligations. Business owners who fall behind on withholding and payroll taxes face the IRS at its most aggressive. Trust fund recovery penalties can be assessed personally against any individual the IRS deems responsible for collecting and remitting the tax. We review those assessments for accuracy and pursue resolution through installment arrangements or, where the facts support it, through the bankruptcy process.
  • Property Tax Delinquencies. Unpaid property taxes in Arizona create a lien that the county may sell at public auction. If the homeowner does not redeem that lien within the statutory redemption period, the purchaser can petition for title to the property. We work with homeowners to resolve delinquent balances before the redemption window closes.
  • Chapter 7 Bankruptcy for Tax Debt. Chapter 7 can wipe out qualifying income tax obligations completely. The debt must satisfy several timing requirements, and not every tax year will meet them. That is exactly why a year-by-year analysis matters before any petition is filed. A single miscalculation can leave a non-dischargeable balance intact while the rest of the case proceeds.
  • Chapter 13 Bankruptcy for Tax Debt. Chapter 13 allows the debtor to repay priority tax obligations through a court-approved plan lasting three to five years. Penalties and interest stop accruing on many tax debts once the plan receives confirmation from the court. For taxpayers carrying a mix of dischargeable and non-dischargeable balances, Chapter 13 addresses both categories within a single structured framework.
  • IRS Installment Agreements. When bankruptcy is not the right fit, a negotiated installment agreement may allow the taxpayer to repay the balance over time at an amount the household can actually afford. We handle the application and negotiate terms that reflect real financial capacity, not the IRS’s initial proposed payment.
  • Offer in Compromise. The IRS will, in limited circumstances, accept less than the full balance owed. The taxpayer must demonstrate that paying the full amount would cause economic hardship or that the amount offered represents the most the IRS could reasonably expect to collect. Acceptance rates are low. The documentation requirements are extensive. We evaluate eligibility thoroughly before pursuing this path.
  • Tax Lien and Levy Release. An active levy against wages or a bank account requires immediate attention. A federal tax lien attaches to every asset the taxpayer owns and appears on credit reports. We pursue release of active levies and negotiate lien subordination or withdrawal where the circumstances warrant it.

Tempe Tax Debt Infographic

Tax debt lawyer can help you with infographic

Why Choose Wright Law Offices as My Tax Debt Lawyer in Tempe, AZ?

Client Results and Track Record

Wright Law Offices has guided clients through the discharge of qualifying federal and state income tax obligations, negotiated installment agreements that brought monthly payments down to sustainable levels, and filed Chapter 13 plans that stopped active IRS levies while providing a clear repayment path for priority tax claims.

Attorney Background and Arizona Practice

Benjamin Wright earned his J.D. from the University of Wisconsin Law School. He is licensed in Arizona and Wisconsin and admitted to practice before the U.S. Bankruptcy Court for the District of Arizona. His practice has been concentrated on bankruptcy and debt resolution for over a decade, and that includes cases involving five- and six-figure IRS balances, state tax obligations, and trust fund recovery penalties assessed against business owners.

Mr. Wright understands the intersection between IRS collection procedures and the federal bankruptcy code in a way that matters at the case level. He knows which tax years are likely to qualify for discharge. He knows how to structure a Chapter 13 plan so that priority tax claims are addressed without consuming every dollar of the debtor’s disposable income. And he knows when an installment agreement or offer in compromise is the more practical option. As a bankruptcy lawyer in Tempe, he connects tax resolution strategy to the client’s full financial picture rather than treating the tax debt in isolation. Wright Law Offices offers free consultations to Tempe residents facing tax debt.

What Is Important to Understand About Tax Debt Cases?

Tax Debt Resolution Options and How They Work

Tempe residents carrying tax debt have more options than most people realize. The challenge is that not every option applies to every case. The right strategy depends on what type of tax is owed, how old the debt is, whether returns were filed on time, and what the taxpayer’s income and assets look like today.

  • Discharge Through Bankruptcy. Certain income taxes can be eliminated in Chapter 7 or Chapter 13. The requirements are specific: the return must have been due at least three years before the bankruptcy filing, it must have been filed at least two years before the petition date, and the assessment must have occurred at least 240 days prior. Miss one threshold by even a few weeks, and the debt survives the discharge.
  • Chapter 13 Repayment Plan. Priority tax debts that cannot be discharged must be repaid in full through the plan. The advantages of Chapter 13 in a tax context are significant: penalties and interest stop accruing on many obligations, repayment is consolidated into a single monthly amount, and the automatic stay prevents the IRS from taking any further collection action during the plan.
  • Installment Agreement. The IRS permits taxpayers to repay outstanding balances in monthly installments calculated from income, expenses, and total liability. The initial amount the IRS proposes is not always realistic. We negotiate terms that reflect what the taxpayer can actually sustain.
  • Offer in Compromise. The IRS may accept a lump sum or short-term payment that is less than the full balance. This is not a routine outcome. Eligibility requires detailed financial disclosure, and the IRS grants these settlements only when it concludes the proposed amount is the most it could reasonably collect.
  • Currently Not Collectible Status. A taxpayer experiencing genuine financial hardship may qualify to have collection activity temporarily suspended. The debt remains. Penalties and interest continue to accrue. But the IRS stops active enforcement while the taxpayer’s situation stabilizes.
  • Penalty Abatement. The IRS may reduce or remove penalties if the taxpayer demonstrates reasonable cause for failing to file or pay on time. First-time penalty abatement is available for taxpayers with a clean compliance history for the three preceding years. We review every penalty assessment and pursue abatement wherever the facts support it.

What Are Important Aspects of a Tax Debt Case?

A handful of factors carry disproportionate weight in determining what resolution paths are available and how the IRS or state agency will approach collection.

The age and type of the obligation matters more than almost anything else. Income taxes, payroll taxes, and trust fund recovery penalties each follow different rules for dischargeability, collection priority, and negotiation leverage. An income tax balance from 2019 is a fundamentally different problem than a payroll tax assessment from last quarter.

Whether returns were filed on time is critical. The IRS draws a hard line between taxpayers who filed and could not pay versus taxpayers who did not file at all. Several of the discharge timing rules do not begin to run until the return is actually filed. If the IRS prepared a substitute return on the taxpayer’s behalf, the analysis becomes even more complex.

Current income and assets determine which strategies are realistic. An offer in compromise requires proving an inability to pay the full balance. An installment agreement must be calibrated to actual disposable income. A Chapter 7 filing requires passing the means test. Every resolution path demands a documented, accurate financial picture.

Active collection actions change the timeline. A wage levy or bank account seizure demands immediate response. Filing for bankruptcy invokes the automatic stay, which halts all IRS and state collection activity the moment the petition is filed with the court.

What Is the Tax Debt Case Timeline?

How long it takes to resolve tax debt depends on the strategy selected and the complexity of the obligations at issue. A straightforward Chapter 7 case moves on a very different timeline than an offer in compromise involving multiple tax years.

  • The process begins with a full review of IRS transcripts and Arizona Department of Revenue account records. We need to see the exact balance, penalty, and interest breakdown, and assessment date for every tax year at issue.
  • If unfiled returns exist, those must be prepared and submitted before any bankruptcy petition can be filed or any IRS resolution program can be pursued.
  • For bankruptcy cases, the petition is typically prepared and filed within two to four weeks of the initial consultation. The automatic stay takes effect immediately upon filing.
  • A Chapter 7 case generally moves from filing to discharge in three to four months. Qualifying tax debts are eliminated at discharge.
  • A Chapter 13 plan lasts three to five years. Priority tax debts are repaid through the plan. Remaining dischargeable balances are eliminated upon completion.
  • Non-bankruptcy resolutions operate on IRS processing timelines. Installment agreements typically take 30 to 60 days to finalize. Offers in compromise often require six months or longer before the IRS issues a determination.

What Should You Bring to Your Tax Debt Consultation?

Bringing your financial and tax records to the first meeting allows us to provide a substantially more accurate assessment of your position and available options.

  • IRS notices you have received, including any notice of deficiency, intent to levy, federal tax lien filing, or correspondence regarding a prior installment agreement
  • State tax notices from the Arizona Department of Revenue, including assessment letters, collection notices, and any payment arrangement correspondence
  • Federal and state tax returns for the last three years, and documentation identifying which years, if any, remain unfiled
  • Proof of income for all household members, including recent pay stubs, the two most recent years of tax returns, and records of any self-employment or supplemental income
  • A written monthly budget that reflects both fixed obligations and discretionary spending

We review these records during the consultation at our Tempe office and outline the resolution strategies that apply to your specific tax debt situation.

What Are Important Arizona Legal Resources for Tax Debt Cases?

Arizona taxpayers can access several government and institutional resources for general information on tax obligations, collection procedures, and available assistance programs.

  • The Internal Revenue Service publishes detailed information on payment options, installment agreements, and offers in compromise for taxpayers unable to pay their full balance.
  • The U.S. Bankruptcy Court for the District of Arizona provides filing procedures, required forms, and general guidance for individuals considering bankruptcy as a tax debt resolution strategy.
  • The Arizona Department of Revenue administers state tax collection and publishes information on payment plans, compliance requirements, and taxpayer obligations.
  • The Taxpayer Advocate Service operates independently within the IRS to assist taxpayers who are experiencing hardship or who have been unable to resolve disputes through normal IRS channels.
  • The Consumer Financial Protection Bureau publishes information on debt collection rights that apply alongside federal and state tax collection procedures.

Reach Out to Wright Law Offices to Schedule a Consultation

If tax debt from the IRS or the State of Arizona is affecting your financial stability in Tempe, Wright Law Offices is prepared to evaluate your case and present a clear path forward. We offer free consultations. During the initial meeting, our legal professionals review your tax records and financial documents, identify which obligations may qualify for discharge or reduction, and recommend a specific course of action based on your income, your assets, and the nature of what you owe. Contact us to schedule an appointment.