Are California taxes dischargeable in bankruptcy? 3 Answers as of September 08, 2010

Are federal and California taxes dischargeable if I file for a Chapter 7 bankruptcy in California?

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The Law Office of Mark J. Markus | Mark Markus
Tax dischargeability in bankruptcy is an extremely complicated area of law. The only way to determine if a tax is dischargeable is to obtain literal transcripts (called records of account) from the taxing agency, and have an expert bankruptcy tax attorney analyze them. Short of that, however, the basic rules for dischargeability of a tax are as follows:

The minimum requirements for discharging federal or state/ income taxes/ are (all of the following must be met): (1) it has been more than 3 years since the returns were last DUE (including extensions) to be filed, (2) the returns were timely filed _or_ it has been at least 2 years since the returns were filed, (3) there was no fraud involved or attempts to evade the tax, AND, (4) the taxes were not assessed within the last 240 days.

There are many factors which alter the above time frames so, as I mentioned, you really need an attorney to analyze the specifics of your situation.
Answer Applies to: California
Replied: 9/8/2010
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