How does filing for bankruptcy affect your taxes? 2 Answers as of November 17, 2010

How does filing for bankruptcy affect your taxes?

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Masson & Fatini, LLP
Masson & Fatini, LLP | Susan Fatini -Masson
Sometimes a bankruptcy will discharge your taxes. There is a 5 part test to see if it can:

Tax debts are associated with a particular tax return and tax year. The bankruptcy law lays out specific criteria for how old a tax debt should be. If the income tax debt meets all five of these rules, then the tax debt is dischargeable in Chapter 7 and Chapter 13 bankruptcy petitions.

1. The due date for filing a tax return is at least three years ago.
2. The tax return was filed at least two years ago.
3. The tax assessment is at least 240 days old.
4. The tax return was not fraudulent.
5. The taxpayer is not guilty of tax evasion.
Answer Applies to: California
Replied: 11/17/2010
David Hoines Law
David Hoines Law | David Hoines
Under right circumstances, it can wipe them out. Consult a bankruptcy attorney, as it is quite complex
Answer Applies to: Florida
Replied: 11/10/2010
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