It is that time of year again. The deadline for filing your taxes is slowly approaching. If you are thinking about filing for bankruptcy you may be wondering if your file for bankruptcy can discharge your tax debt.
The way US bankruptcy law treats discharging federal income tax debt can be extremely complicated. Eligibility to discharge income tax debt is possible under a chapter 7 bankruptcy or a chapter 13 bankruptcy but only under certain conditions and specific requirements.
Some of the requirements are that the tax return was filed at least two years ago and the due date for filing the tax return is at least three years ago. Bankruptcy law stipulates that the tax return in question in the file for bankruptcy was not fraudulent. The tax assessment must be at least 240 days old and is very important that the court determines that the taxpayer is not in any way guilty of tax evasion.
Another requirement you should be aware of when thinking of filing for bankruptcy is that you must prove that your four previous year’s tax returns have been filed with the IRS. Prior to having a chapter 7 bankruptcy or a chapter 13 bankruptcy granted to the filer by the court, the petitioner must show proof that he or she has indeed filed taxes for the four years prior. It is a requirement that a copy of your most recently filed tax return must be furnished and given to the court and any or all creditors that request a copy.
Attempting to interpret all the specific requirements to see whether you qualify to discharge tax debt in your file for bankruptcy can be rather confusing. You should seek the professional advice of a licensed bankruptcy attorney who can guide you through this complicated set of rules.
Only bankruptcy attorneys are qualified experts and can interpret the law to determine how to file bankruptcy in your particular case, at what time filing bankruptcy would be most advantageous for you and what chapter of US bankruptcy code to file for bankruptcy under.
Take the first step with a free bankruptcy case review by a licensed bankruptcy lawyer near you. Your bankruptcy attorney will thoroughly review your particular situation and will be happy to advise you as to whether or not you will be able to discharge tax debt through your bankruptcy and if so which tax debt is dischargeable.
Jay King is a owner of BankruptcyIntro.com. We’ve all heard of large companies filing for bankruptcy or “going bankrupt” and most of us would think that particular company must be in trouble.