Income tax debts may be eligible for discharge under Chapter 7 or Chapter 13 of the Bankruptcy Code. There are other ways we can also help you to lower or get out of tax debt.
Please call us for more information on the other ways besides bankruptcy.
In order for tax debts to be discharged in a bankruptcy the bankruptcy petitioner must have tax debts that meet following five criteria:
1.) Taxes must be income-based
Taxes other than income can never be eliminated in bankruptcy. Payroll tax or fraud penalties cannot be eliminated.
2.) Due date for filing a tax return is at least three (3) years ago
The tax return must have been originally due at least three years before you filed for bankruptcy. This due date includes any extensions.
3.) Tax return was filed at least two (2) years ago
You must have filed a tax return for the debt you wish to discharge at least two years before filing for bankruptcy.
4.) Tax assessment is at least 240 days old
IRS must have assessed the income tax debt at least 240 days before you file bankruptcy. Assessment is the statutorily required recording of the tax liability.
5.) Tax return was not fraudulent or guilty of tax evasion.
You did not commit fraud or willful tax evasion.
**Federal Tax Liens cannot ever be eliminated in bankruptcy.
Disclaimer: Law Offices of Lady Justice is a Professional Law Corporation that represents clients all over Southern California. The information contained on this website is not to be construed as legal advice. It is not intended to solicit or form an attorney-client relationship. We do not guarantee any result and prior results do not guarantee a similar outcome. This is an attorney advertisement and this website is for informational purposes only.