Can I eliminate income tax debt through bankruptcy? 27 Answers as of May 29, 2013

I was wondering whether getting rid of income tax debt is conditional.

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
Generally if it's over 3yrs old. Contact a local attorney for specifics.
Answer Applies to: Washington
Replied: 7/20/2012
Bankruptcy Law office of Bill Rubendall
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
Some income tax is dischargeable in bankruptcy. There are several complex rules that apply. Consult with an attorney as to the specific facts of your case.
Answer Applies to: California
Replied: 7/18/2012
CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE).
CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE). | Gary Lee Lane
No.
Answer Applies to: California
Replied: 5/29/2013
Olson Law Firm | Edward M Olson
No. Taxes are non-dischargeable.
Answer Applies to: Michigan
Replied: 7/16/2012
Steven Alpers | Steven Alpers
Yes, it can only be discharged by a chapter 13 if it is over 3 years old.
Answer Applies to: California
Replied: 7/16/2012
    R. Jason de Groot, P.A
    R. Jason de Groot, P.A | R. Jason de Groot
    Income taxes which are more than three years old are dischargeable.
    Answer Applies to: Florida
    Replied: 7/11/2012
    Alvin Lundgren | Alvin Lundgren
    You can only eliminate income tax debt that was assessed more than 3 years prior to your bankruptcy.
    Answer Applies to: Utah
    Replied: 7/11/2012
    Connaghan Newberry Law Firm
    Connaghan Newberry Law Firm | Tara D. Newberry
    Some tax debts can be discharged under very specific situations. Even if the tax debt cannot be discharged (or eliminated), you can file a Chapter 13 plan to pay off your tax debt in a manner that may reduce or eliminate the penalties and interest, but at the very least give you up to 60 months in which to payoff what you owe the IRS and discharge any other unsecured debt you may have.
    Answer Applies to: Nevada
    Replied: 7/11/2012
    Attorney At Law | Harry D. Roth
    Yes and no. Some personal income taxes can be discharged. In general, the taxes must meet three criteria in order to be discharged: the taxes must have been due at least 3 years ago (since all income taxes are considered "due" on April 15 of the year following the tax year involved, that means that right now, taxes from tax years 2008 and earlier are more than 3 years old); the tax return must have been filed at least 2 years before the bankruptcy was filed; and the taxes must have been assessed (meaning that nasty letter from the IRS telling you you owe more money) more than 240 days ago. The last 2 rules together prevent taxpayers from filing a very late return, then turning around and filing for bankruptcy without first giving the IRS a chance to collect.
    Answer Applies to: California
    Replied: 7/11/2012
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    There are rules, some taxes are dischargable. Go see a lawyer. If that lawyer does not ask for a tax transcript, go get another lawyer.
    Answer Applies to: California
    Replied: 7/11/2012
    Law Office of D.L. Drain, P.A.
    Law Office of D.L. Drain, P.A. | Diane L. Drain
    It depends on the age of the debt, the date that you filed the return, if you have entered into a reassessment agreement, etc. Please understand that filing for bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step. Most Arizona bankruptcy attorneys offer a free consultation about the basics of bankruptcy.
    Answer Applies to: Arizona
    Replied: 7/11/2012
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    It will depend on several factors among which is how old is the tax debt. You should speak to a local attorney to discuss the particulars of your case.
    Answer Applies to: New York
    Replied: 7/10/2012
    Weber & Phillips, P.A.
    Weber & Phillips, P.A. | John G. Phillips
    Some income tax debt is dischargeable if it meets certain conditions. It must be older than three years (2008 and prior years) and assessed at least 240 days prior to filing. There are some other twists and turns that the law can take so please consult with a bankruptcy attorney in your area to get specific answers for your specific situation.
    Answer Applies to: Arkansas
    Replied: 8/13/2012
    The Smalley Law Firm, LLC | Cary Smalley
    That depends on numerous factors such as when the debt was incurred, when the return was filed, when the return was due, etc.
    Answer Applies to: Kansas
    Replied: 7/10/2012
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    You can in certain cases. It is not easy filing against tax debt but it is possible. However, I would recommend that you see a tax expert to make sure your tax debt is dischargeable before you file your case.
    Answer Applies to: California
    Replied: 7/10/2012
    Law Offices of Joseph A. Mannis
    Law Offices of Joseph A. Mannis | Todd Mannis
    Three basic requirements, and this is a very simplified version of this - you would definitely want to consult with a bankruptcy attorney and consult further. 1) The tax must be over three years old from the time it was due. 2) The return must have been filed at least two years prior to the bankruptcy 3) The tax cannot have been assessed within the past 240 days. Again, that is the bare-basics version, but if you don't meet those requirements, the tax will not be discharged.
    Answer Applies to: California
    Replied: 7/10/2012
    Law Office of Jeffrey Solomon
    Law Office of Jeffrey Solomon | Jeffrey Solomon
    Sometimes. The starting point of the analyses is that the taxes must be from at least 3 tax years prior to filing bankruptcy, and you filed the return. The issue is more complicated, and you should consult an attorney. But it is possible depending on your case.
    Answer Applies to: Florida
    Replied: 7/10/2012
    Saedi Law Group
    Saedi Law Group | Lorena Saedi
    There are several conditions that must be met in order to discharge income taxes. I would schedule an appointment with a bankruptcy attorney who deals with tax issues to review your liabilities to see if any of these amounts are eligible.
    Answer Applies to: Georgia
    Replied: 7/6/2012
    Charles Schneider, P.C.
    Charles Schneider, P.C. | Charles J. Schneider
    Yes it is conditional but too long to explain here.
    Answer Applies to: Michigan
    Replied: 7/10/2012
    David Andersen & Associates PC | Jeremy Shephard
    It depends. Some income taxes are dischargeable and some are not.
    Answer Applies to: Michigan
    Replied: 7/10/2012
    Bruce Plesser | Bruce Plesser
    No.
    Answer Applies to: Florida
    Replied: 5/29/2013
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    Yes you can discharge income debt, but there are requirements in order to do so. Generally, the year in question must be more than three years ago (currently in June 2012, it is 2007 and before), you must have actually signed and filed the return, if you filed the return late, it must have been filed more than two years, and the tax must have been assessed more than 8 months before filing. However, to be certain all of the requirements have been met in your particular circumstances, you should consult with a bankruptcy attorney with experience with tax discharge most general bankruptcy attorneys are not familiar enough with all of the specific requirements.
    Answer Applies to: California
    Replied: 7/10/2012
    Ryan Legal Services, Inc.
    Ryan Legal Services, Inc. | Kevin Ryan
    Under 11 U.S.C. ??523(a)(1)(B), (a) A discharge under section 727, 1141, 1228 (a), 1228 (b), or 1328 (b) of this title does not discharge an individual debtor from any debt? (1) for a tax or a customs duty? (A) of the kind and for the periods specified in section 507 (a)(3) or 507 (a)(8) of this title, whether or not a claim for such tax was filed or allowed; (B) with respect to which a return, or equivalent report or notice, if required? (i) was not filed or given; or (ii) was filed or given after the date on which such return, report, or notice was last due, under applicable law or under any extension, and after two years before the date of the filing of the petition.
    Answer Applies to: Ohio
    Replied: 7/10/2012
    Law Office of Pho Ethan Tran PLLC
    Law Office of Pho Ethan Tran PLLC | Pho Ethan Tran
    Income tax cannot be discharged in bankruptcy.
    Answer Applies to: Texas
    Replied: 7/10/2012
    Law Office of David P. Farrell
    Law Office of David P. Farrell | David Farrell
    Yes, you can discharge back taxes in bankruptcy, but there are specific rules and requirements that must be met to do so. The general rule is that the tax has to be more than 3-years old, meaning that the due date of the tax must be more than 3-years prior to your bankruptcy filing, including any extensions, you must have timely filed a nonfraudulent return for the year(s) in question. If you didn't timely file a return, the return must be on file for at least 2-years before your case is filed. And, the tax has to have been assessed more than 240 days before your bankruptcy filing. If you meet all of these requirements, then generally the tax can be discharged in bankruptcy. This calculation can be confusing.
    Answer Applies to: California
    Replied: 7/10/2012
    Danville Law Group | Scott Jordan
    Tax debt is dischargeable. However, you must meet the test for discharging taxes. I suggest you contact a local bankruptcy attorney for assistance in this matter.
    Answer Applies to: California
    Replied: 7/10/2012
    Indianapolis Bankruptcy Law Office of Eric C. Lewis
    Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
    Yes, under the right circumstances, it is possible.
    Answer Applies to: Indiana
    Replied: 7/10/2012
Click to View More Answers:
12 3 4 5 Free Legal QuestionsConnect with a local attorney