QUESTION
Can I file for bankruptcy if I owe thousands of dollars in back taxes?
Asked on Feb 18th, 2014 on Bankruptcy - Connecticut
17 ANSWERS
Commercial Bankruptcy Attorney serving Davie, FL
at
Law Office of Jeffrey Solomon
Update Your Profile
Income taxes can be eliminated in bankruptcy under certain conditions. As a partial answer, you might be able to eliminate income taxes if the tax return was due for a tax year more than 3 years prior to filing the bankruptcy. For example, for 2010 income taxes, filing bankruptcy after April 15, 2014 might discharge these taxes. You need to consult with an attorney to fully analyze the issues involved.
Answered on Feb 28th, 2014 at 4:33 PM
Deborah F. Bowinski
Yes, but depending upon the type of taxes owed, what tax years you owe for, and when and whether the tax returns were filed some or all of the tax debt may not be dischargeable. Do not try to do this yourself! Find an experienced bankruptcy lawyer and hire him or her to guide you.
Answered on Feb 28th, 2014 at 4:31 PM
Chapter 7 Bankruptcy Attorney serving Milwaukee, WI
at
Law Offices of Deborah A. Stencel
Update Your Profile
Yes, but the taxes may not be discharged. Whether taxes are discharged in bankruptcy depends on facts you have not disclosed in your question. See an attorney.
Answered on Feb 28th, 2014 at 5:15 AM
Taxes that were assessed more than 3 years ago can be discharged in bankruptcy, but even if they cannot be discharged, you can still file bankruptcy. A chapter 13 bankruptcy may be an excellent way to pay off taxes over a period of 3 to 5 years. Delinquent taxes will not prevent you from filing a Chapter 7, either, although if the taxes were assessed less than 3 years ago, they cannot be discharged. In either bankruptcy chapter, you are required to file any outstanding returns going back at least 3 years, so even if you are not able to get current on paying the taxes, you are expected at least to file all required tax returns. They don't all have to be filed before you file bankruptcy, but they must be filed before you get your discharge.
Answered on Feb 28th, 2014 at 5:15 AM
Debt Settlement Attorney serving San Diego, CA
at
Law Offices of Kathryn Tokarska
Update Your Profile
Yes you can file but I think the question you have in mind is whether any or all of those taxes are potentially dischargeable in bankruptcy. The answer to that question will depend on more information that is not provided in your question.
Answered on Feb 28th, 2014 at 5:15 AM
Depends. Generally speaking, taxes are dischargeable 3 years after a timely filed tax return, 2 years after a late filed return, and 240 days after an assessment. The filing of a tax lien changes some of these rules. If you owe more than $5,000 in non-dischargeable taxes, you may want to consider a Chapter 13 to set up a payment plan with the IRS. Also, the IRS can not take any legal procedures against you while you are in a confirmed Chapter 13 plan.
Answered on Feb 28th, 2014 at 5:14 AM
You can always file if you otherwise qualify for bankruptcy, but I would need more information to determine whether you would be able to eliminate these tax debts in a bankruptcy. For example, were the tax returns filed on time? What kind of taxes are owed? Income tax, sales tax, payroll withholding taxes? What years are the tax debts for?
Answered on Feb 28th, 2014 at 5:14 AM
Bankruptcy Attorney serving Omaha, NE
at
Heineman Law Office
Update Your Profile
Yes, and some, maybe all, could be discharged in your bankruptcy.
Answered on Feb 28th, 2014 at 5:13 AM
Debt Relief Attorney serving Anaheim, CA
Partner at
Marlin Branstetter Attorney at Law
Owing back taxes would have no bearing on you right to file bankruptcy. If you are asking if your taxes can be discharged it depends on several factors. Did you file taxes for the years you owe? Did you keep any payment arrangements you may have had with the taxing authorities? How old are the taxes? Was there any fraud or misrepresentation involved? You should contact an experienced bankruptcy attorney to discuss your options.
Answered on Feb 28th, 2014 at 5:13 AM
General Practice Attorney serving Coeur d'Alene, ID
at
Michael B. McFarland, PA
Update Your Profile
Yes, but all of your returns need to be filed - also, depending on how old the tax liabilities are, some or all of them may be dischargeable. You should contact an experienced bankruptcy attorney for assistance in determining that, as it could affect the timing of your filing bankruptcy.
Answered on Feb 28th, 2014 at 5:13 AM
Bankruptcy Attorney serving Buford, GA
at
Kenneth A. Parker, PC
Update Your Profile
Possibly. It depends on several facts such as how old are the taxes, were the returns filed on time and if the IRS assessed the tax, when did the IRS make the assessment.
Answered on Feb 28th, 2014 at 5:12 AM
2 Awards
Yes, but depending on the type and due date of the taxes they may be non dischargeable.
Answered on Feb 28th, 2014 at 5:12 AM
Federal taxes can be discharged. In general if they are older than 3 years and have been filed for at least two years, they disappear.
Answered on Feb 28th, 2014 at 5:11 AM
Bankruptcy Law Attorney serving Livingston, NJ
Partner at
Law Office of Stuart M. Nachbar, P.C.
2 Awards
You can file but chances are that the type of taxes owed may not be dischargeable.
Answered on Feb 28th, 2014 at 5:11 AM
Complex Litigation Attorney serving Costa Mesa, CA
at
Thomas Vogele & Associates, APC
Update Your Profile
Yes, but in most instances, filing a bankruptcy will not relieve you of your tax obligations. Income and other government taxes and levies are not discharged through bankruptcy, except under very limited circumstances. You should consult with a bankruptcy attorney to discuss your specific situation.
Answered on Feb 28th, 2014 at 5:10 AM
Not only can you file for bankruptcy regardless of owing thousands of dollars in back taxes but if your taxes were assessed more than three years ago they actually may be dischargeable in bankruptcy.
Answered on Feb 28th, 2014 at 5:09 AM
Information provided doesn't create an attorney/client privilege nor constitute an offer of services and is only general responses to hypotheticals
Bankruptcy Attorney serving Walnut Creek, CA
at
Alan E. Ramos Law Offices
Update Your Profile
Yes. However, the taxes may not be dischargeable, so you should speak with an attorney to determine the effect of bankruptcy on your tax liability. This answer was provided as a public service to a question posed on the Law Q & A website. The answer is based on the information provided and is limited to those facts. Furthermore, the answer is based on California law and their application to bankruptcy law in California.
Answered on Feb 28th, 2014 at 5:09 AM