Is it easy to eliminate tax debts through bankruptcy? 6 Answers as of October 13, 2010

Is it common for people to discharge tax debt through bankruptcy?

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The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
I I do not know if it is easy or common, but if you meet the requirements, it is certainly possible. If you are referring to income tax debt, the requirements for discharge 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 exceptions to the above and things that increase the above time periods, so it is critical that you have a knowledgeable bankruptcy attorney analyze your situation.
Answer Applies to: California
Replied: 10/13/2010
Greifendorff Law Offices, PC
Greifendorff Law Offices, PC | Christine Wilton
Generally no. There are exceptions however. Contact an attorney for clarity on this issue.
Answer Applies to: California
Replied: 10/13/2010
Law Office of Barbara Seeley Curtis
Law Office of Barbara Seeley Curtis | Barbara Curtis
No. Only debts more than 3 years old.
Answer Applies to: Florida
Replied: 10/13/2010
Law Offices of Michael J. Berger
Law Offices of Michael J. Berger | Michael J. Berger
The discharge of taxes in a bankruptcy proceeding is a complex subject. Some taxes can be discharged, others can not. Factors that are important include what type of tax is it, how many years have passed since the tax year in question, when was the return filed, was there any assessment and if so, when was it made, was a return filed at all, and did the debtor file a fraudulent return or willfully attempt to evade taxes. You can start your research on this point by looking at 11 U.S.C. Section 523 (a) (1).

It would be best to consult a certified specialist in bankruptcy law and disclose to him all the facts and circumstances regarding the taxes that you owe. I have helped hundreds of clients to discharge taxes that they owe.
Answer Applies to: California
Replied: 10/12/2010
Diefer Law Group, P.C.
Diefer Law Group, P.C. | Abel Fernandez
No it is not. Taxes are very hard to discharge.
Answer Applies to: California
Replied: 10/12/2010
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