What happens to back taxes in bankruptcy? 18 Answers as of June 13, 2011

What happens to back taxes in bankruptcy?

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

Free Case Evaluation by a Local Lawyer: Click here
Gresham Family & Bankruptcy Law
Gresham Family & Bankruptcy Law | Lillian Suelzle Watson
Taxes are exempt from discharge in bankruptcy in most cases. They can be removed if they are old enough. Check with your bankruptcy attorney. Good luck.
Answer Applies to: Oregon
Replied: 6/13/2011
Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
Tax penalties over 3yrs old are dischargeable.
Answer Applies to: Washington
Replied: 6/13/2011
Burnham & Associates
Burnham & Associates | Stephanie K. Burnham
Nothing happens to back income taxes in Bankruptcy. You are obligated to pay your debts to the IRS.
Answer Applies to: New Hampshire
Replied: 6/10/2011
Bird & VanDyke, Inc.
Bird & VanDyke, Inc. | David VanDyke
Back income taxes can, under certain circumstances, be discharged by filing bankruptcy. It depends mainly on when these taxes were assessed to by the IRS or the state. This is a very tricky area of the law and I would advise that you speak with an attorney.
Answer Applies to: California
Replied: 6/10/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Some are discharged, some are not. Start our by going to the local IRS office and getting a "Plain English Transcript" for each year in question. Take those transcripts to a knowledgeable bankruptcy lawyer. Without the transcripts no one can give good advice on what will or will not be discharged.
Answer Applies to: California
Replied: 6/10/2011
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    It depends, taxes can be discharged but not always. You need to get expert tax advise in order to determine if you can discharge taxes.
    Answer Applies to: California
    Replied: 6/10/2011
    Law Office of Maureen O' Malley
    Law Office of Maureen O' Malley | Maureen O'Malley
    Depends on how old they are. If first due over 3 years ago and filed on time, they may be dischargeable. Payroll taxes and the like are not.
    Answer Applies to: Virginia
    Replied: 6/10/2011
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    That depends on what the taxes are for, who they're owed to, for what years, whether the returns were filed on time and, if not, when they were filed, and many other factors. Income taxes (for example) are dischargeable if all of the following prerequisites are met as of the date your bankruptcy case was filed: (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. Tax dischargeability is a very complex area and you need to consult with a qualified bankruptcy attorney about what you may be able to do with your taxes in a bankruptcy case.
    Answer Applies to: California
    Replied: 6/9/2011
    Indianapolis Bankruptcy Law Office of Eric C. Lewis
    Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
    Some back taxes are dischargable in bankruptcy, some are not. For specific advice, you should seek guidance from a local bankruptcy attorney.
    Answer Applies to: Indiana
    Replied: 6/9/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    Most back taxes are not dischargeable in bankruptcy. However, some taxes that are more than three years old can be discharged. Consult an attorney specializing in bankruptcy to determine whether you qualify. The State Bar has a list of certified specialists.
    Answer Applies to: California
    Replied: 6/9/2011
    Symmes Law Group, PLLC
    Symmes Law Group, PLLC | Richard James Symmes
    Back taxes may or may not be discharged in bankruptcy. Generally taxes that are over 3 years old from the date that they were due will be dischargeable in bankruptcy if the taxes have been filed at the time they were due.
    Answer Applies to: Washington
    Replied: 6/9/2011
    Financial Relief Law Center
    Financial Relief Law Center | Mark Alonso
    Depending on when the taxes are from you may be able to discharge them however, typically, if they are recent tax debts you will not be able to discharge them through bankruptcy.
    Answer Applies to: California
    Replied: 6/9/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    Income taxes are generally dischargeable if it has been more than three years since the date the return was due and the return was filed and there was no fraud. There are other requirements but those are the basic ones. For example if you filed the tax return by April 15, 2008 for 2007 income taxes then filing for bankruptcy now would most likely wipe out those 2007 taxes owed. You need to consult with an attorney to evaluate your own situation and make sure that you qualify to discharge the taxes.
    Answer Applies to: California
    Replied: 6/9/2011
    Daniel Hoarfrost, Attorney at Law
    Daniel Hoarfrost, Attorney at Law | Daniel Hoarfrost
    If the returns were filed and the taxes are more than 3 years old, they are dischargeable. If they are more recent than that, they are not dischargeable, although a Ch 13 payment plan can be used to pay them over 3 - 5 years if necessary.
    Answer Applies to: Oregon
    Replied: 6/9/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    That depends on what type taxes you owe, how old they are, and what type bankruptcy you file.
    Answer Applies to: Georgia
    Replied: 6/9/2011
    Lakelaw - Loop Bankruptcy
    Lakelaw - Loop Bankruptcy | David Leibowitz
    Some get discharged - some don't. Payroll taxes, sales taxes and taxes you collected or withheld for someone else never are discharged. Taxes you filed returns on within the past 3 years are not discharged. Some taxes more than 3 years old might be discharged. This depends if you filed your tax returns on time.
    Answer Applies to: Illinois
    Replied: 6/9/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    Depends on whether the returns were filed and how old they are. Generally if the returns were filed on time and are for a year more than three years before filing then they can be discharged. It is best you consult with a bankruptcy attorney who also does tax resolution work.
    Answer Applies to: California
    Replied: 6/9/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    Depends on many factors, namely what year you filed them. They typically survive BK, but can be discharged under the exception to the rule. Must be at least 3 years old.
    Answer Applies to: California
    Replied: 6/9/2011
Click to View More Answers:
12 3 4 Free Legal QuestionsConnect with a local attorney