Fontana IRS Tax Debt Lawyer
The goal in an IRS case is simple to say and hard to reach alone: stop the levies, stop the interest from swallowing every payment, and land on a resolution you can actually afford. Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that handles IRS tax debt for people in Fontana and across San Bernardino County, Los Angeles County, Orange County, and Riverside County. If you are looking for a Fontana IRS tax debt lawyer, you can speak directly with an attorney from your first call.
Tax debt behaves differently from a credit card balance. The IRS can take money from a paycheck or a bank account without suing you first, and it does not care that rent is due. That is why the strategy matters: some tax debt can be wiped out in bankruptcy, some can be repaid over time inside a Chapter 13 plan, and some is best handled by negotiating directly with the IRS. Which path fits depends on the age of the tax year, what was filed and when, and what you own.
Why Choose Wadhwani & Shanfeld for IRS Tax Debt Relief
Wadhwani & Shanfeld has helped more than 30,000 individuals and families get out from under debt. The firm is led by two Board-Certified Specialists in Consumer Bankruptcy through the American Board of Certification, a distinction held by a small fraction of attorneys nationally, and the team carries more than 90 years of combined legal experience. The firm serves clients throughout the Inland Empire, including Fontana, Rancho Cucamonga, Upland, San Bernardino, Chino, and Pomona, along with the rest of Southern California, and it handles IRS tax debt alongside Chapter 7, Chapter 13, debt settlement, wage garnishment, and creditor lawsuits. You get direct access to an attorney from the first call, and cases can be handled entirely by phone, email, video, and online chat, with 100% virtual consultations available.
Raj Wadhwani, a founding shareholder and Board-Certified Specialist in Consumer Bankruptcy, is a Southwestern Law School graduate who helped pilot the Best Case Bankruptcy software in 1998 and was the first attorney to file a bankruptcy case electronically in the Central District of California. Greg Shanfeld, also a founding shareholder and Board-Certified Specialist in Consumer Bankruptcy, earned his law degree from the University of Southern California and has handled more than 10,000 bankruptcy cases over three decades.
That depth matters for tax debt because the best answer often sits at the line between bankruptcy law and tax collection. A firm that only negotiates with the IRS will rarely tell you that Chapter 7 might discharge the debt entirely. A firm that only files bankruptcy may miss a payment arrangement that solves the problem more cheaply. Because Wadhwani & Shanfeld handles both, the recommendation is based on what fits your numbers, and the firm acts quickly when a levy, garnishment, or sale date is days away. The firm files in every division of the U.S. Bankruptcy Court for the Central District of California, and Fontana filers fall under the Riverside Division, which serves Riverside and San Bernardino Counties.
Common IRS Tax Debt Situations We Handle
- Unfiled Returns: Years of missed returns often lead to substitute returns prepared by the IRS, which usually overstate what you owe. Filing accurate returns is typically the first step, and it also affects whether older tax debt can later be discharged.
- Older Income Tax Debt: Some income tax debt can be eliminated in Chapter 7 if it meets specific timing rules tied to the return due date, the filing date, and the assessment date. Reviewing your transcripts is how we find out whether a given year qualifies.
- Wage Levies and Bank Levies: The IRS can take a portion of each paycheck or empty an account after proper notice. Filing bankruptcy triggers the automatic stay, which halts collection actions while the case is pending.
- Self-Employment and Gig Income: Many Fontana workers in logistics, trucking, and warehouse-adjacent contracting get 1099 income with no withholding. Missed quarterly payments and self-employment tax can snowball into a large balance with penalties.
- Payroll and Business Tax Trouble: Owners of small businesses can face trust fund liability for unpaid payroll taxes. We handle small business bankruptcy and business debt solutions and can evaluate how the business debt and personal exposure fit together.
- Tax Debt Plus Other Debt: Many clients owe the IRS while also carrying credit cards, medical bills, and personal loans. Wiping out the unsecured debt in Chapter 7 can free up income to deal with taxes that survive.
- Tax Liens and Property Concerns: A recorded lien can cloud your title and complicate a sale or refinance. How a lien interacts with your home equity and California’s exemptions is part of choosing the right strategy.
- Priority Tax Debt in Chapter 13: Recent taxes that cannot be discharged can be paid through a three-to-five-year Chapter 13 plan, often without the ongoing pressure of collection while the plan is in place.
What to Do When the IRS Is Collecting in Fontana
Start by reading every notice and noting the date and notice type. The IRS usually sends a series of letters before it levies, and some of them carry hearing rights with firm deadlines. Do not ignore them, and do not throw them away. Bring every notice to your consultation, along with recent pay stubs, bank statements, and any tax returns you have.
Next, get your tax transcripts. They show which returns were filed, what was assessed, and when, and those dates drive nearly every strategic decision. We use them to determine whether a year is old enough to discharge, whether a substitute return was filed, and whether penalties were added.
If a levy or garnishment has already started, tell us right away. A bankruptcy filing stops most collection activity the moment the case is filed, and in an emergency we can often prepare and file quickly. Fontana residents file in the Riverside Division of the U.S. Bankruptcy Court for the Central District of California, and the court determines the division by the street address where you live, not a P.O. box. If you are also being sued by a creditor, that case would typically be heard in San Bernardino County Superior Court, which has a Fontana District.
Avoid the common mistakes: paying a tax-relief company up front on a promise of “pennies on the dollar,” moving money out of your accounts, or agreeing to an installment plan you cannot sustain. Missing payments on an IRS arrangement can end the arrangement. Also avoid filing a bankruptcy petition without a tax review, because the wrong timing can leave a debt that could have been discharged.
Bankruptcy and Tax Debt: What Can and Cannot Be Wiped Out
Not all tax debt is treated alike. Some older income tax debt can be eliminated in Chapter 7, but only if it meets specific timing rules and the returns were properly filed. Tax debt that does not qualify generally survives, though Chapter 13 can give you a structured way to pay it over time while collection is paused.
Chapter 7 is typically completed in roughly four months and requires passing the means test, which compares your income to the California median for your household size. Chapter 13 is built for people with steady income who need structure, and it can stop a foreclosure, catch up on missed payments, and pay priority tax debt through one monthly payment over three to five years.
Property protection is the other half of the analysis. California does not use the federal exemptions. Filers choose between two state systems: one with a homestead exemption aimed at homeowners, and another with a flexible wildcard that often suits renters. The filer must pick one system for the whole case, and generally must have lived in California for at least 730 days to use them. Choosing correctly decides whether you keep your home, car, and savings, and it is a decision our board-certified attorneys make carefully for every client.
When Negotiation With the IRS Beats Bankruptcy
Bankruptcy is not always the answer, and we will say so. If your tax debt is recent, or the returns were filed late in a way that blocks discharge, the better route may be an installment agreement, a negotiated resolution, or representation to stop a levy and set up payment arrangements. Our attorneys also handle debt settlement, loan modification, and second mortgage settlements, so we can look at your whole balance sheet rather than only the tax bill.
Because we offer both paths, the recommendation depends on what actually protects you. Sometimes that is a Chapter 7 filing that eliminates credit cards and old taxes together. Sometimes it is a Chapter 13 plan that repays recent taxes while shielding your home. Sometimes it is a direct negotiation with no court filing at all.
Fontana IRS Tax Debt FAQs
Can the IRS take my paycheck without going to court?
Yes. Unlike most creditors, the IRS can levy wages and bank accounts through its own administrative process after sending required notices. A bankruptcy filing triggers the automatic stay, which halts most collection activity the moment the case is filed.
Can tax debt be wiped out in bankruptcy?
Some older income tax debt can be discharged in Chapter 7 if it meets specific timing rules and the returns were properly filed. Debt that does not qualify generally survives, but a Chapter 13 plan can let you repay it over three to five years.
What if I never filed my tax returns?
You should get them filed, and the sooner the better. Unfiled years can block discharge, and the IRS may have prepared substitute returns that overstate your liability. We review your transcripts to see what the IRS has on record before deciding on a strategy.
Will bankruptcy stop an IRS levy?
In most cases, yes. The automatic stay takes effect when the petition is filed. If a levy or garnishment is days away, tell us immediately so we can prepare and file quickly.
Do I have to come to an office to get help?
No. We handle cases fully by phone, email, video, and online chat, and we offer 100% virtual consultations. You can speak with an attorney directly from your first call.
Which bankruptcy court would my case be filed in if I live in Fontana?
Fontana is in San Bernardino County, so cases are filed in the Riverside Division of the U.S. Bankruptcy Court for the Central District of California. The court assigns the division based on your street address.
Can I keep my home if I owe the IRS?
Often yes. In Chapter 7, the question is whether your equity is protected by California’s exemptions. If you have more equity than the exemption covers, or you are behind on payments, Chapter 13 can let you keep the property while you repay priority debt over time.
Is it worth hiring a lawyer for a relatively small tax balance?
Often it is, because penalties and interest keep growing and a small balance can still trigger a levy. A short consultation can tell you whether a payment arrangement, a negotiation, or bankruptcy is the cheapest way out.
What if I owe both the IRS and credit card companies?
That is common. Chapter 7 can eliminate qualifying unsecured debt such as credit cards and medical bills, which frees up income to deal with taxes that survive. We look at all of it together so one fix does not undermine another.
Can my employer fire me because the IRS garnishes my wages?
Your employer is not automatically notified of a bankruptcy, and California and federal law prohibit firing someone solely for filing. If a levy reaches your paycheck, the employer will receive it, which is one reason to act before it reaches that point.
What happens if I miss payments on an IRS installment agreement?
The agreement can default, and collection can resume. Before committing to any plan, make sure the payment fits your actual budget, and tell us early if your income changes so we can look at alternatives.
Serving Fontana and the Inland Empire With IRS Tax Debt Representation
Wadhwani & Shanfeld represents Fontana residents and neighbors throughout San Bernardino County, including San Bernardino, Rancho Cucamonga, Upland, Chino, Chino Hills, Montclair, Pomona, Claremont, and Ontario. We also serve Riverside and the Coachella Valley in Riverside County, and clients across the eastern San Gabriel Valley in communities such as Glendora and West Covina.
Across Los Angeles County, we help clients in Los Angeles, Sherman Oaks, Van Nuys, Encino, Woodland Hills, Northridge, North Hollywood, Santa Clarita, Long Beach, Torrance, Compton, Inglewood, and the Antelope Valley cities of Lancaster and Palmdale. In Orange County, our reach includes Anaheim, Santa Ana, Garden Grove, Fullerton, Huntington Beach, Costa Mesa, Newport Beach, Tustin, and Mission Viejo. Wherever you live in Southern California, you can handle your IRS tax debt case remotely or come in person.
Talk to a Fontana IRS Tax Debt Attorney Today
You do not have to wait for the next levy notice to get answers. A Fontana IRS tax debt attorney at Wadhwani & Shanfeld can review your transcripts, explain what can be discharged and what cannot, and tell you honestly whether bankruptcy, a payment arrangement, or negotiation gives you the best path forward. Call today for a free consultation and speak directly with an attorney about your options.
