Riverside IRS Tax Debt Lawyer
Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that helps Riverside residents deal with the debts that follow them home, including back taxes, and serves clients throughout Riverside County and the surrounding Southern California region. When the balance is owed to Washington instead of a credit card company, the rules change, and finding the right Riverside IRS tax debt lawyer means finding someone who understands both tax collection and bankruptcy.
The IRS does not need a court judgment to take your money. It can file a federal tax lien, levy your bank account, and take a portion of every paycheck through a continuing wage levy, all through its own administrative process. That is a very different animal from the creditor lawsuits most people picture when they think of debt collection, and it is why generic debt advice often misses the mark on tax problems.
The good news is that tax debt is not always permanent. Depending on how old the return is, when it was filed, and whether the IRS assessed the tax, some income tax debt can be wiped out in bankruptcy, and much of the rest can be organized into a payment plan or negotiated arrangement. The first job is figuring out which kind of tax debt you actually have.
Why Riverside Taxpayers Choose Wadhwani & Shanfeld for IRS Debt
Wadhwani & Shanfeld has helped more than 30,000 individuals and families get out from under debt and start over across Los Angeles, Orange, Riverside, and San Bernardino Counties. The firm is led by two Board-Certified Specialists in Consumer Bankruptcy through the American Board of Certification, a distinction earned by a small fraction of attorneys, and the team brings more than 90 years of combined legal experience to every case.
Raj Wadhwani, a founding shareholder and partner, 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 partner, earned his law degree from the University of Southern California and has handled more than 10,000 bankruptcy cases over three decades. Both are Board-Certified Specialists in Consumer Bankruptcy.
Why does that matter for a tax problem? Because the best answer to IRS debt is often found at the intersection of tax rules and bankruptcy rules. A firm that only negotiates with the IRS may never tell you that Chapter 7 could erase an older income tax balance, and a firm that only files bankruptcy may miss a payment arrangement that solves the problem more cheaply. Our attorneys handle IRS tax debt representation alongside Chapter 7, Chapter 13, and debt settlement, so the recommendation is based on what fits your situation, not on the only service we happen to offer.
You speak directly with an attorney from your first call, consultations are free, and we can handle your entire case by phone, email, video, and online chat. When a levy or garnishment is days away, we act fast.
Common IRS Debt Situations We See Among Riverside Clients
- Unpaid Income Tax From Prior Years: A balance left over after a job loss, a divorce, or a year when withholding fell short. Some older income tax debt can be discharged in Chapter 7 if it meets specific timing rules, which we check against your return dates and assessment dates.
- Bank Levies: The IRS can empty an account without going to court. Unlike an ordinary creditor judgment, a levy for debts owed to the government falls outside California’s automatic deposit account protection, which makes quick action more important.
- Wage Levies: A continuing levy on your paycheck that stays in place until the debt is resolved or the IRS releases it. Filing bankruptcy triggers the automatic stay, which halts collection activity.
- Self-Employment and Small Business Tax Debt: Gig workers, contractors, and small business owners often owe estimated taxes they never set aside. We handle small business bankruptcy and business debt solutions alongside the personal tax side.
- Back Taxes Combined With Other Debt: Many clients owe the IRS while also carrying credit cards, medical bills, or personal loans. A single Chapter 7 or Chapter 13 filing can address all of it together.
- Priority Tax Debt in Chapter 13: Recent taxes that cannot be discharged can be repaid through a three-to-five-year plan, often without interest accruing during the plan, while you keep your home and car.
- Tax Debt Alongside a Foreclosure or Garnishment: When the IRS is one of several pressures, a Chapter 13 plan can catch up on a mortgage and handle the tax balance in one structure.
What to Do Right Now If the IRS Is Collecting From You
Start by opening every envelope. IRS notices carry deadlines, and the most important ones, such as a Final Notice of Intent to Levy, give you a limited window to respond and request a hearing before collection begins. Ignoring the mail does not slow the IRS down. It only removes your options.
Next, gather your paperwork: the notices themselves, the tax returns for the years in question, your last two pay stubs, recent bank statements, and a list of your other debts. Request your account transcripts from the IRS so you can see what was actually assessed and when. Those dates decide whether a tax debt can be discharged, so they matter more than most people realize.
Be careful about what you do before you talk to an attorney. Do not drain accounts or move property to keep it from the IRS, because transfers made to avoid creditors can create new problems. Do not agree to a payment plan you cannot sustain just to make the calls stop. A defaulted installment agreement can leave you worse off than before.
If bankruptcy turns out to be the right tool, Riverside residents file in the Riverside Division of the U.S. Bankruptcy Court for the Central District of California, which sits in the city of Riverside and serves Riverside and San Bernardino Counties. Your street address, not a P.O. box, determines the division. Filing stops IRS collection activity under the automatic stay the moment the petition is filed, and we can prepare an emergency filing when a levy is imminent.
If you are also being sued or garnished by non-tax creditors, the Riverside Superior Court handles those civil cases locally, and a bankruptcy filing stops those too. Call before any response deadline passes so we can sort out the right sequence.
When Tax Debt Can Be Erased, and When It Cannot
Not every tax debt is treated the same in bankruptcy. Income taxes can qualify for discharge in Chapter 7 only if they meet timing rules tied to when the return was due, when it was actually filed, and when the tax was assessed, along with a requirement that the return was filed honestly and was not fraudulent. Taxes that are too recent are treated as priority debts, which Chapter 7 cannot erase but Chapter 13 can organize into manageable payments.
Payroll taxes, trust fund taxes, and tax debts tied to fraud generally fall outside the discharge. Federal tax liens add another layer: even when the personal debt is wiped out, a lien that was recorded before filing can remain attached to property you owned at the time. That is why we look at your property, not just the balance, before recommending a path.
Choosing the right California exemption system also matters when you own a home or have savings. California has opted out of the federal exemptions, so filers choose between two state systems, and you must have lived in California long enough to use them. We work through both before you file so you keep as much as the law allows.
Riverside IRS Tax Debt Questions, Answered
Can bankruptcy get rid of IRS debt?
Sometimes. Older income tax debt can be discharged in Chapter 7 if it satisfies the timing and filing rules. Newer income taxes usually cannot be erased but can be repaid through a Chapter 13 plan. We review your transcripts to see which category your debt falls into.
Will bankruptcy stop an IRS levy or wage garnishment?
Filing triggers the automatic stay, which requires collection activity to stop, including most levies and garnishments. We can often prepare a case quickly when a levy or sale is close.
Can the IRS take my bank account without suing me?
Yes. The IRS can levy accounts through its own administrative process after sending required notices. Unlike an ordinary creditor judgment levy, the automatic deposit account exemption does not apply to debts owed to the government.
Do I have to file my back tax returns before I can get help?
Usually, yes, and it is better to do it with guidance. Unfiled returns block most payment arrangements and can prevent a tax debt from being discharged. We help clients get compliant before choosing a strategy.
Should I hire a tax lawyer or a bankruptcy lawyer?
If your tax debt could be discharged or you have other debts piling up, a bankruptcy attorney who also handles IRS representation can compare every route. Our attorneys do both, so you are not steered toward only one answer.
Can I keep my home if I owe the IRS?
Often, yes. In Chapter 7, the question is whether your equity is covered by California’s homestead protection. In Chapter 13, you can keep the home and repay priority taxes over the life of the plan.
What happens to a federal tax lien if I file bankruptcy?
The personal liability may be discharged if the debt qualifies, but a lien recorded before filing can still attach to property you owned. We evaluate the lien against your property’s value and exemptions before you file.
Is it worth hiring a lawyer if I only owe a few thousand dollars to the IRS?
It can be, especially if levies are threatened or you have other debts. A short consultation can show whether a payment arrangement, a settlement, or a bankruptcy filing makes the most sense, and consultations are free.
Will my employer find out if the IRS garnishes my wages?
The IRS sends a levy notice directly to your employer, so yes, payroll will know. Stopping the levy quickly is one reason people call us early. California law bars an employer from firing you because of a garnishment on a single judgment, but a levy is a different process, so ask us about your situation.
How long does a tax-related bankruptcy take?
Most Chapter 7 cases are completed in roughly four months. A Chapter 13 plan runs three to five years. Your timeline depends on which chapter fits your income, assets, and the type of tax debt you owe.
Can I file bankruptcy if I filed before?
Yes, subject to waiting periods. You must wait 8 years between Chapter 7 filings, 4 years to file Chapter 13 after a Chapter 7, 2 years between Chapter 13 filings, and generally 6 years to file Chapter 7 after a Chapter 13.
Do I have to come to an office to get started?
No. We offer 100% virtual consultations and can handle your case fully by phone, email, video, and online chat, so you can start from home anywhere in Riverside County.
Serving Riverside and Inland Southern California Tax Debt Clients
Our work for Riverside County residents covers the city of Riverside and the communities around it, and we help clients across the Inland Empire. That includes neighboring San Bernardino County cities such as San Bernardino, Fontana, Rancho Cucamonga, Upland, Ontario, Chino, Chino Hills, and Montclair, as well as the Coachella Valley.
Beyond the Inland Empire, we represent clients in Los Angeles County, including Pomona, Claremont, Glendora, West Covina, Long Beach, Torrance, Inglewood, and the San Fernando Valley communities of Sherman Oaks, Van Nuys, Encino, and Woodland Hills, plus Santa Clarita, Lancaster, Palmdale, and the Antelope Valley. In Orange County, we serve Anaheim, Santa Ana, Garden Grove, Fullerton, Huntington Beach, Costa Mesa, and Newport Beach. Wherever you live in Southern California, IRS debt can be addressed with the same direct attorney access.
Talk to a Riverside IRS Tax Attorney Today
If the IRS is sending notices, levying your account, or taking part of your paycheck, you do not have to figure out the next move alone. A Riverside IRS tax attorney at Wadhwani & Shanfeld can review your transcripts, explain whether your tax debt can be discharged, restructured, or negotiated, and tell you honestly which path gives you the best fresh start.
Call today for a free consultation and speak directly with an attorney. If a levy, garnishment, or sale date is close, tell us right away so we can move quickly.
