Long Beach IRS Tax Debt Lawyer
The goal in an IRS collection case is simple to say and hard to reach alone: stop the levy, get the balance into something you can actually pay, and never again dread the mailbox. Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that handles IRS tax debt for individuals and families in Long Beach and throughout Los Angeles County, Orange County, Riverside County, and San Bernardino County, with remote handling by phone, email, video, and online chat for clients anywhere in Southern California.
If you are searching for a Long Beach IRS tax debt lawyer, you are probably holding a notice that has gotten more serious than the last one. The IRS collection process escalates in stages: a bill, then reminder notices, then a final notice of intent to levy, and eventually seizure of wages or bank funds. Each stage closes off options, which is why the decisions you make early carry the most weight. Some tax debt can be wiped out in bankruptcy, some can be restructured, and some can only be managed through payment arrangements with the IRS. Sorting out which is which is the first job.
Why Choose Wadhwani & Shanfeld for IRS Tax Debt Relief
Wadhwani & Shanfeld has helped more than 30,000 individuals and families deal with debt, and IRS tax debt is one of the areas the firm handles alongside Chapter 7, Chapter 13, debt settlement, foreclosure defense, wage garnishment, and creditor lawsuits. The firm serves clients across Long Beach, Los Angeles County, Orange County, and the Inland Empire, and you can speak directly with an attorney from your very first call, with a free consultation and no pressure to come into an office first. When a garnishment or levy is days away, the firm acts fast rather than putting you in a queue.
The firm is led by two founding shareholders, Raj Wadhwani and Greg Shanfeld, both Board-Certified Specialists in Consumer Bankruptcy through the American Board of Certification. Together with the firm’s attorneys they bring more than 90 years of combined legal experience. Raj Wadhwani, a Southwestern Law School graduate, 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, a University of Southern California law graduate, has handled more than 10,000 bankruptcy cases over three decades. That background matters for tax debt because the best answer is often a bankruptcy chapter, and the timing rules that decide whether old income taxes can be discharged are the kind of detail a bankruptcy specialist works with daily. The firm files in every division of the U.S. Bankruptcy Court for the Central District of California.
Because the firm handles both bankruptcy and the alternatives, the recommendation is based on what fits your numbers, not on the only service on offer. If bankruptcy is not the right tool, you will be told so.
Common IRS Tax Debt Situations We Handle
- Unfiled Returns and Substitute Returns: When years of returns go unfiled, the IRS can prepare its own return for you, usually with no deductions and a bloated balance. Filing accurate returns is often the first step toward shrinking the number and also affects whether older taxes can later be discharged.
- Wage Levies: A levy sends your employer a demand to hand over part of every paycheck until the debt is resolved. Unlike an ordinary judgment garnishment, it is not capped by the same percentage rules, which is why levies can feel so punishing and why acting before one lands matters.
- Bank Account Levies: A levy on a Long Beach bank account freezes the funds for a short period before they are sent to the IRS. Bankruptcy filing halts most collection activity, which can stop a levy that has not yet been completed.
- Old Income Tax Debt: Some older income taxes can be eliminated in Chapter 7 if they meet specific timing rules relating to the return due date, when the return was filed, and when the tax was assessed. Whether your years qualify is a case-by-case calculation worth running before you assume the debt is permanent.
- Recent Taxes and Priority Debt: More recent income taxes generally cannot be wiped out, but Chapter 13 lets you pay them through a three-to-five-year plan with the IRS bound by its terms, often without further penalties piling up the way they otherwise would.
- Self-Employed and Small Business Tax Debt: Gig workers, contractors, and owners of small Long Beach businesses often fall behind on estimated payments or payroll taxes. The firm handles small business bankruptcy and business debt solutions, and the right path depends on whether the debt is personal income tax or something else.
- Tax Debt Mixed With Other Debt: Many clients owe the IRS while also carrying credit cards, medical bills, and personal loans. Wiping out the unsecured debts in bankruptcy can free cash flow to pay the tax balance that remains.
- Tax Liens and Property: A federal tax lien attaches to what you own and can complicate refinancing or selling. Planning around it, especially for homeowners, is part of choosing the right strategy.
What to Do Right Now If the IRS Is Coming After You
Start by reading every notice from the IRS closely and noting the date on each one. The notice type tells you where you are in the process, and some notices carry response deadlines that, once missed, close off rights you would otherwise have. Do not ignore a notice because the amount looks wrong or because you plan to deal with it later. If the number is wrong, that is a reason to respond, not a reason to wait.
Next, gather the paperwork that every option depends on: copies of the notices, any returns you have filed for the years in question, pay stubs, bank statements, and a list of everything you owe, not just the IRS balance. Whether bankruptcy fits, whether a payment arrangement is realistic, and whether you qualify to settle for less all turn on your full financial picture. If you have not filed returns for one or more years, say so up front. It changes the strategy, and an attorney can only help with problems they know about.
Be careful about what you tell the IRS on your own before you have a plan. Agreeing to a payment amount you cannot sustain is one of the most common mistakes, because a failed arrangement can leave you worse off than before. Likewise, do not move money or transfer property to keep it away from the IRS; that can backfire badly and can cause trouble in a later bankruptcy.
If your debts include more than taxes, such as a creditor lawsuit, a wage garnishment, or a foreclosure, the court that matters depends on the type of case. Lawsuits from private creditors against Long Beach residents are generally heard in the Los Angeles County Superior Court, while a bankruptcy case is filed in the U.S. Bankruptcy Court for the Central District of California. Your street address determines which division handles your filing, and the firm sorts that out as part of preparing your case. Filing triggers the automatic stay, which halts most collection activity on the day of filing, so when a levy or sale is imminent, speed matters more than perfection in the first conversation. Call, describe the deadline you are facing, and let the attorney tell you what can be done in the time you have.
Chapter 7, Chapter 13, or Something Outside Bankruptcy
The decision that shapes everything else is which tool to use. Chapter 7 can eliminate qualifying unsecured debt and some older income tax debt, and most cases finish in roughly four months. It requires passing the means test, which compares your income to the California median for a household your size and then considers your actual expenses. Chapter 7 does not eliminate recent taxes or taxes that fall outside the timing rules, so a Chapter 7 can leave you with an IRS balance that survives the discharge, though with the rest of your debt gone it may be far easier to handle.
Chapter 13 is built for people with steady income who need structure. Your debts, including priority tax debt, are reorganized into one monthly payment over three to five years, and once the court confirms the plan, creditors are bound by it. It also suits people whose income is above the Chapter 7 limits or who want to protect assets beyond what exemptions cover. Because Chapter 13 can stop a levy and give you a fixed schedule, many clients with large recent tax bills find it the more workable route.
Outside bankruptcy, the firm also represents clients with the IRS to stop levies and set up payment arrangements, and handles debt settlement and direct negotiation with creditors. The right choice depends on how much you owe, which years the debt covers, your income, and what you own. California’s exemption system also matters: filers choose between two state exemption systems, one with a larger homestead exemption and one with a flexible wildcard, and the choice must be made carefully because it applies to the whole case.
Long Beach IRS Tax Debt Questions
Can bankruptcy get rid of IRS tax debt?
Sometimes. Older income tax debt can be discharged in Chapter 7 if it meets specific timing rules, and the rest of your unsecured debt can be eliminated alongside it. Recent income taxes generally survive Chapter 7 but can be paid through a Chapter 13 plan. An attorney needs to review the specific years and dates before telling you which category your debt falls into.
Will filing bankruptcy stop an IRS levy?
Filing a bankruptcy petition triggers the automatic stay, which halts most collection activity from the moment of filing, including levies that have not been completed. In an emergency the firm can often prepare and file a case very quickly when a levy is imminent.
What is the difference between how the IRS collects and how a private creditor collects?
A private creditor generally has to sue and win a judgment before it can garnish wages or levy a bank account. California limits wage garnishment on an ordinary judgment to a set percentage of your disposable earnings. The IRS can levy without a lawsuit once it has followed its notice procedures, which is why tax collection can move faster and bite harder.
Can the IRS take my house?
The IRS can file a lien against your property and, in some circumstances, pursue seizure. Most people keep their homes when the debt is addressed early. In bankruptcy, California’s homestead exemption protects home equity up to a limit, and Chapter 13 can let you keep a home while paying tax debt over time.
Do I have to file my back returns before getting help?
Usually, yes, or at least as part of the plan. Unfiled returns prevent most resolution options and can affect whether old taxes are dischargeable. Telling your attorney about missing returns early lets them plan the order of steps.
Should I set up an IRS payment plan on my own?
You can, but be cautious about committing to a payment you cannot sustain. A defaulted arrangement can leave you in a worse position. It is worth talking to an attorney first so you know whether bankruptcy or a negotiated arrangement would serve you better.
Will my employer find out about an IRS levy?
A wage levy goes directly to your employer, so yes, they will know about it. That is one reason to act before a levy is issued. Bankruptcy filing itself does not automatically notify your employer, though Chapter 13 plan payments may be deducted from pay.
What if I owe the IRS and also have credit card debt and medical bills?
That combination is common, and it often points toward bankruptcy. Eliminating credit card and medical debt in Chapter 7, or consolidating everything into one Chapter 13 payment, can free money to handle the tax balance that remains.
Is it worth hiring a lawyer if I only owe a few thousand dollars?
It can be, especially if levies are threatened or returns are missing. A short consultation can tell you whether a simple arrangement will do or whether you are missing a better option. The consultation is free.
I am self-employed in Long Beach and fell behind on estimated taxes. Are my options different?
The tools are the same, but the details differ. Self-employed filers often owe both income tax and self-employment tax, and their income swings affect the means test and plan feasibility. The firm handles small business debt and can look at your personal and business obligations together.
Can I handle all of this without coming to an office?
Yes. The firm handles cases fully by phone, email, video, and online chat, and offers 100% virtual consultations, so you can resolve an IRS problem from home anywhere in Southern California.
How long does the process take?
It varies by route. A Chapter 7 case is usually completed in roughly four months, while a Chapter 13 plan runs three to five years. Negotiated arrangements depend on the IRS’s review of your finances.
Serving Long Beach and Surrounding Communities With IRS Tax Debt Relief
The firm’s IRS tax debt work begins with Long Beach and reaches throughout Los Angeles County. Clients come from Signal Hill, Lakewood, Bellflower, Paramount, Norwalk, Cerritos, Cypress, Gardena, Torrance, Compton, Inglewood, and Huntington Park, as well as Los Angeles, Hollywood, Santa Monica, and the San Fernando Valley communities of Sherman Oaks, Van Nuys, Encino, Woodland Hills, Reseda, Northridge, Granada Hills, North Hollywood, North Hills, Mission Hills, San Fernando, and Sylmar. The firm also serves Santa Clarita, and the Antelope Valley communities of Lancaster, Palmdale, and Acton.
Just across the county line, the firm represents Orange County residents in Anaheim, Santa Ana, Garden Grove, Buena Park, Fullerton, Huntington Beach, Westminster, Costa Mesa, Newport Beach, Tustin, La Habra, Placentia, Mission Viejo, and Laguna Niguel. In the Inland Empire and eastern San Gabriel Valley, clients come from Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Pomona, Chino, Chino Hills, Montclair, Claremont, Glendora, West Covina, Riverside, and the Coachella Valley. Wherever you live, the same attorneys can review your tax situation and build a plan around it.
Talk to a Long Beach IRS Tax Attorney Before the Next Notice Arrives
You do not have to wait for a levy to take action. A Long Beach IRS tax attorney at Wadhwani & Shanfeld can review your notices, your income, and your debts, explain what can be eliminated, what can be restructured, and what must be paid, and tell you honestly which path makes sense. Call today for a free consultation and speak directly with an attorney, or schedule a virtual consultation if that is easier. If a levy, garnishment, or sale date is close, say so on the first call, and the firm will move accordingly.
