Most people assume that tax debts are not eligible for elimination in bankruptcy. While there are some criteria for the exclusion of a tax debt in bankruptcy, some tax debts are eligible for a discharge in bankruptcy.
The bankruptcy code is very specific about tax debt eligibility criteria, and there is always room for additional exclusions at the discretion of the court; but, the basic guidelines for including a tax debt in a bankruptcy filing are:
(1) The taxes are income taxes.
(2) The taxes were not accrued fraudulently and/or no attempt to evade payment.
(3) A tax return was filed for the debts in question.
(4) The income tax debt is at least three years old from the time of filing for bankruptcy.
(5) The income tax debt has been assessed by the IRS at least 240 days prior to filing for bankruptcy.
Even with the satisfaction of these criteria, having your tax debts successfully discharged in bankruptcy is not always easy. We are experienced in the area of tax debt relief and can help you best plan for the resolution of your unpaid taxes. From document preparation and organization to negotiation and discharge, our attorneys can guide you through the tax debt relief process.
Don’t risk the consequences of unpaid taxes or missing your change at a tax debt discharge. Let us help answer all the questions you may have about finding tax debt relief through bankruptcy. Call us at (937) 748-1749 to schedule a FREE consultation to examine your options or you can contact us.
We have also provided you with some information about tax debts in bankruptcy through the videos below: