You May Be Able To Discharge Past Tax Debt As Part Of Your Bankruptcy
The IRS is a fairly determined creditor if you owe back taxes. There are a few instances in which you can discharge your tax debt in bankruptcy, but they are quite specific. You need a lawyer with extensive experience in bankruptcy law, and who has dealt with the IRS, to discharge overdue taxes.
At Lefkovitz & Lefkovitz, we know how complicated your situation can be, especially if it involves the IRS. We thrive on taking the cases other law firms turn down. We have guided thousands of people in Nashville and all over Middle Tennessee through the bankruptcy process. If there is a way to solve your financial problems, our attorneys will find it.
But I Thought Nothing Was Certain Except Death And Taxes
Well, that is still true. It’s possible that, depending on the type of tax you owe, how long it is overdue and when you filed your return, we may be able to discharge your tax debt in bankruptcy. To do that, your debt must meet these basic conditions:
- Your debt must be three or more years overdue.
- Your debt must be from income tax or income based.
- You must have filed your tax return at least two years ago.
- The taxing authority must have assessed the taxes at least 240 days ago.
- You cannot have committed or intended to commit fraud on the tax return nor can you intentionally evade any tax laws when discharging this debt.
This is a very light sketch of the circumstances that would allow you to discharge your tax debt. There are a number of mitigating factors, as well as types of tax debt you can never discharge in bankruptcy. Our lawyers will review your situation and let you know whether you are eligible for this as part of your bankruptcy, or what would have to occur for you to be eligible if appropriate.
For more information, read our article, “Is bankruptcy the way to deal with overdue tax debt?”
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