Can tax debt be discharged in bankruptcy?
CAN TAXES BE DISCHARGED IN CHAPTER 7 BANKRUPTCY?
While most taxes cannot be discharged in a Chapter 7 bankruptcy, there is some tax debt that is dischargeable. To get help, call our office or initiate a chat using the chat box below. We will tell you exactly what to do next to get the best possible outcome.
-The taxes incurred were based on “income” tax, not payroll or other taxes.
-You did not commit fraud or tax evasion.
-The tax debt is at least 3 years old prior to filing for bankruptcy
-You filed a tax return. You can’t be eligible to discharge a tax debt if you never filed a return. However, you may be able to file a late return but we would need to discuss this personally.
-You pass the “240 day rule”. The income tax debt must have been assessed by the IRS at least 240 days before you file your bankruptcy petition, or must not have been assessed yet. If the IRS hast stopped their collection efforts due to an “offer in compromise", this time limit may be extended.
-The IRS hasn’t filed a tax lien on your property.
Analyzing a situation to determine whether someone’s tax debt is dischargeable in Chapter 7 bankruptcy is complicated and takes an experienced attorney to assess. Call our office to make an appointment in order to discuss your particular situation.
There is only one way to guarantee the best outcome for your situation. Call our office today or contact us online.