QUESTION
What can I do with a nine year old federal tax lien?
Asked on May 17th, 2012 on Bankruptcy - California
More details to this question:
We had a 2003 federal tax lien. In 2008, the property was foreclosed on and we are contemplating filing chapter 7 bankruptcy. My question is can this lien be included in the bankruptcy/
12 ANSWERS
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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It may be discharged, but it depends also on other factors.
Answered on Jun 14th, 2013 at 2:36 AM
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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Google "discharge income tax in bankruptcy" & read articles; my favorite is the Findlaw article. You must do certain things in order to discharge income taxes, but those might be eligible.
Answered on May 23rd, 2012 at 7:09 PM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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Assuming that there was no fraud, the tax return was timely filed, etc., the taxes should be dischargeable.
Answered on May 23rd, 2012 at 11:43 AM
No the lien is not dischargable but may soon fall off per IRS limitations period.
Answered on May 22nd, 2012 at 7:24 PM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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Filing bankruptcy does not remove tax liens. However, it is okay to ask IRS to remove the lien; sometimes they will do that.
Answered on May 22nd, 2012 at 6:31 PM
Yes, if the lien only applied to the foreclosed property. Also, all your taxes must have been fully accessed, due and payable for more than 3 years.
Answered on May 18th, 2012 at 6:31 PM
Bankruptcy Attorney serving Overland Park, KS
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The Smalley Law Firm, LLC
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Yes, generally it sounds like it should be dischargeable. However, I suggest you consult with a bankruptcy attorney to discuss the specific details of the line to ensure that it will be discharged.
Answered on May 18th, 2012 at 5:46 PM
Yes it can IF you filed a tax return for the year in question (at least 2 years ago) and the tax is for personal income tax or self-employment tax. (And don't ever say "included"; everything is included, even non-dischargeable debt and debt to your grandmother. What you meant is "it is dischargeable").
Answered on May 18th, 2012 at 3:30 PM
Immigration Attorney serving Arlington, TX
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Law Office of Pho Ethan Tran, PLLC
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The IRS has 10 years to collect on outstanding tax liabilities. After 10 years, the tax debt is automatically wiped out. Hence, you could just wait until 2013 for the debt to clear by itself.
Answered on May 18th, 2012 at 3:27 PM
As a general rule, federal taxes are non-dis-chargeable. Interest owed on unpaid taxes is also non-dis-chargeable.
Answered on May 18th, 2012 at 3:10 PM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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Income tax obligations that are more than 3 years old are dischargeable in a Chapter 7 Bankruptcy. Yes, the lien can be included in the bankruptcy. Start educating yourselves about chapter 7 and whether you can qualify for it, or whether you must file a chapter 13. On my website there is an information booklet that will help you understand the process. You can also do a google search for "chapter 7 means test calculator" and see if you qualify.
Answered on May 18th, 2012 at 2:59 PM
The lien is not discharged in bankruptcy. The lien must be released by the IRS.
Answered on May 18th, 2012 at 2:33 PM