What will filing for a bankruptcy do to my taxes? 20 Answers as of April 16, 2015

What will filing for a bankruptcy do to my taxes?

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GARCIA & GONZALES, P.C. | Richard N. Gonzales
Assuming you filed tax returns, income tax liability is dischargeable three years after a timely filing, and two years after a late filing. You also have to wait 240 days after an "assessment" by the IRS (i.e., an audit). There are a few other rules that come into play, so you must be very careful. Pay an experienced lawyer for an hour of their time to get the answers you need.
Answer Applies to: Colorado
Replied: 4/16/2015
Eranthe Law Firm
Eranthe Law Firm | Cate Eranthe
It won't do anything to your taxes. You could discharge 30 million in debt and there is no tax liability triggered. If you're asking about old tax that is due the IRS the rules are complex and you should see a knowledgeable local bankruptcy attorney to discuss.
Answer Applies to: California
Replied: 4/15/2015
John W. Lee, P.C.
John W. Lee, P.C. | John W. Lee
Filing a bankruptcy may not discharge certain tax debt. Generally speaking, taxes that are less than three years old are not discharged in bankruptcy. Any tax refunds you may be entitled to could become part of the bankruptcy estate and administered by the Trustee for the benefit of your creditors unless you have the exemptions to protect them. Tax debts and tax refunds can be tricky in bankruptcy, you should contact an experienced local attorney to help you.
Answer Applies to: Virginia
Replied: 4/14/2015
Ronald K. Nims LLC | Ronald K. Nims
Income taxes where you filed the return more than three years ago are discharged in bankruptcy. If you didn't file or you filed within 3 years, the taxes remain a debt. If you've got taxes that aren't dischargeable, you should consider a Chapter 13, you'll pay the taxes through the bankruptcy.
Answer Applies to: Ohio
Replied: 4/14/2015
Goldsmith & Guymon
Goldsmith & Guymon | Marjorie Guymon
Your question is quite broad. If you are wondering if taxes you owe will be affected by bankruptcy filing that largely depends on how old they are what type of taxes they are and whether you filed a return. If you are inquiring with regard to the tax refund, if the irs owes you money at the time you file it is considered property of the bankruptcy estate and may be subject to turn over to the trustee.
Answer Applies to: Nevada
Replied: 4/14/2015
    Pearson Butler
    Pearson Butler | Jeffrey R. Butler
    What happens depends on whether the tax debt is dischargeable or not. In some tax liability scenarios, the IRS only has a certain number of years to collect on tax debt. After that period, the debt may be dischargeable. A seasoned bankruptcy attorney can explain how that works.
    Answer Applies to: Utah
    Replied: 4/13/2015
    Garner Law Office
    Garner Law Office | Daniel Garner
    Generally speaking, taxes are not dischargeable in bankruptcy. If sufficient time has elapsed after filing your taxes, it may be possible to discharge older tax liabilities in a bankruptcy. All collection activity must stop when a bankruptcy is filed, so if you are being garnished for taxes, a bankruptcy will provide temporary relief. You might also be able to discharge penalties and interest on the tax debt. If your taxes are substantial, a chapter 13 bankruptcy may be a good solution to pay off the tax debt over a period of time up to 5 years. It will at least stop additional penalties from accruing on the debt while you are in the chapter 13, although interest continues to accrue.
    Answer Applies to: Oregon
    Replied: 4/13/2015
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    That is a complicated question. Some taxes are dischargable. In order to tell which one are you need a tax transcript (one with 3 digit numbers down the left side). With that a lawyer can figure it out. Google "IRS and Transcripts" and the IRS link will come up. You may find a lawyer at NACBA.ORG, see the attachment.
    Answer Applies to: California
    Replied: 4/13/2015
    It will have no affect upon your current taxes. Taxes that were filed on time and are more than 3 years since the due date are dischargeable.
    Answer Applies to: Minnesota
    Replied: 4/13/2015
    Michael J. Duggar, P.A.
    Michael J. Duggar, P.A. | Michael J. Duggar
    Depends on the age of the taxes. If the taxes are less than 3 years old, they are not dischargeable and you must pay them. If you filed the taxes timely, and they are older than three years (2011 after April 15th and older), they may be dischargeable in a Chapter 7. If you have an asset case, the good news is the IRS debt gets paid when you pay the court in your Chapter 7. Best wishes!
    Answer Applies to: Florida
    Replied: 4/13/2015
    Patrick W. Currin, Attorney at Law | Patrick Currin
    You can eliminate old tax debt under certain circumstances, but un-filed or recent taxes won't be affected.
    Answer Applies to: California
    Replied: 4/13/2015
    Andrew Gordon
    Andrew Gordon | Andrew Gordon
    Generally, the last three years of tax liabilities will not be discharged in bankruptcy.
    Answer Applies to: Illinois
    Replied: 4/13/2015
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    Could you be a little more specific in your question? Filing bankruptcy typically is not a taxable action and bankruptcy usually does not eliminate recent tax debt. But in some instances, if taxes were filed on time and have been owed for more than three years, taxes can be eliminated in bankruptcy.
    Answer Applies to: Nevada
    Replied: 4/13/2015
    The Orantes Law Firm
    The Orantes Law Firm | Giovanni Orantes
    It depends. Taxes for which a return was due in the last two years (2 tax cycles), are not dischargeable. However, if you have filed your tax returns on time each year, even if you haven't paid off the amount due each year, and you have taxes due for which a return was due more than 2 years ago, they may be dischargeable in a bankruptcy case. However, if you tried to get the IRS to accept an Offer In Compromise during the past or filed another bankruptcy case in that time, the time may be have stopped running for some of the time (a concept called "tolling") and you may need to wait a bit longer to discharge more of the taxes. This is not something that can be done in a hypothetical situation. Each case is fact intensive.
    Answer Applies to: California
    Replied: 4/13/2015
    Law Offices of Daniel J Winter
    Law Offices of Daniel J Winter | Daniel J Winter
    If you owe taxes, some may be eliminated, but most are not. As far as income taxes on discharged debts, you won't need to pay anything.
    Answer Applies to: Illinois
    Replied: 4/13/2015
    Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
    The answer depends on your tax situation, and the Chapter of bankruptcy under which you file. Ordinarily, filing under Chapter 7 or Ch. 13 does not affect your taxes, except that certain kinds of taxes for certain time periods can be discharged in your case. A Chapter 11 case creates a new taxable entity which succeeds to the tax attributes of the debtor. It's always best in these matters to retain an experienced bankruptcy lawyer. Good Luck.
    Answer Applies to: Wisconsin
    Replied: 4/13/2015
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    Very little, you will still have to pay all or most of them. The government makes the rules and therefore does not lose.
    Answer Applies to: Michigan
    Replied: 4/13/2015
    Greene Law Firm, P.A.
    Greene Law Firm, P.A. | David B. Greene
    The answer depends on what kind of taxes and when they were filed. Payroll taxes are never dischargeable in bankruptcy. Personal income taxes must have been filed more than three years before filing the bankruptcy to be eligible for discharge. However, there are several other tests that must be met that are too detailed to flop into here.
    Answer Applies to: South Carolina
    Replied: 4/13/2015
    Polsinelli Shughart PC | William B. Prugh
    Generally, tax liabilities and tax return filings are NOT changed or removed by a bankruptcy filing, with exceptions for tax returns that have been timely filed but taxes not paid for very old tax years. This is a simplification of complex rules, and you should consult someone knowledgeable in tax returns and bankruptcy filings for a definitive answer. Good luck.
    Answer Applies to: Missouri
    Replied: 4/13/2015
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    That is an unclear question. Do to your tax refund or your tax return? Nothing to your tax return but if you don't have enough exemptions then the trustee could take your tax refund.
    Answer Applies to: New York
    Replied: 4/13/2015
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