QUESTION
Are Federal Taxes Discharged in bankruptcy?
Asked on Jul 14th, 2011 on Bankruptcy - Mississippi
More details to this question:
I have been swamped by the IRS for back taxes dating back to 1998 to 2003. I have been informed that these taxes are dischargeable in Bankruptcy by a local Attorney but, I have read online that they cannot be discharged. All 1040's are at least 3 years old and filed over 3 years. Any response will help, Thank you. p.s. I am going to be going through a divorce soon also, Will this hurt my bankruptcy or divorce?
10 ANSWERS
You need a competent attorney to review all the facts before this question can be answered. Too many nuances.
Answered on Jul 22nd, 2011 at 9:36 AM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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Some income taxes are dischargeable in bankruptcy. There are several rules that apply. The taxes must have first become due more than three years ago. The returns must have been filed more than two years ago. There must not have been an assessment for the previous 240 days.
Answered on Jul 18th, 2011 at 1:07 PM
Most income taxes that are that old and have been assessed are dischargable through bankruptcy.
Answered on Jul 18th, 2011 at 11:11 AM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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The basic rule is that income taxes more than 3 years old are dischargeable if you filed a tax return more than 2 years ago and it was not a fraudulent tax return. You should rely on the advice of the local attorney who told you that or see another attorney personally for a second opinion. You should not rely on sites like this for advice since I do not know all the necessary facts to give you a definite opinion. This is only general information.
Answered on Jul 18th, 2011 at 10:02 AM
Spencer Hale
They can be discharged if the debt is over three years old, it has been filed for 2 years, and has been assessed over 240 days prior to filing.
Answered on Jul 16th, 2011 at 7:23 AM
judith runyon
Sounds like yours are based upon your description.
Answered on Jul 16th, 2011 at 7:00 AM
Glen Edward Ashman
The issue of back taxes is complex and that is why you see conflicting answers. Taxes under 3 years old are never dischargeable. Some taxes older than that may be, depending on when they came due and were assessed. There are also differences between Chapter 7 and 13 as how taxes are addressed. Your attorney is best equipped to answer dischargeability. With the taxes being that old, there is a good chance his analysis may prove correct.
Answered on Jul 16th, 2011 at 6:07 AM
Debtor's Rights Attorney serving Atlanta, GA
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Theodore N. Stapleton, P.C.
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It depends. Generally income taxes that last became due over 3 years ago are dischargeable, however it depends on whether returns were filed, when and if assessments were made or the period was tolled for some reason. Please call to schedule a free consultation. T
Answered on Jul 16th, 2011 at 5:58 AM
Bankruptcy Attorney serving Herndon, VA
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Maureen O'Malley
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You have to decide whether to believe a lawyer you consult or the internet articles written by unknown persons. Taxes filed on time that are over 3 years old and for which no liens have been filed are dischargeable.
Answered on Jul 16th, 2011 at 5:49 AM
Samuel Lee Tucker
Yes, you can discharge taxes in bankruptcy. The ones you mentioned would qualify. The returns must have been timely filed.
Answered on Jul 16th, 2011 at 5:42 AM