Tax Debt and Bankruptcy

36 months past federal filing due date—To ensure you have exhausted all means to pay your federal tax debt, the government requires that three years, (including extensions) from the filing due date must pass before taxes can be considered for discharge. Your taxes must have been timely filed otherwise they may not qualify to be discharged.

If you have recently received a government notice that taxes are due, you will likely not be able to include this debt under Chapter 7 bankruptcy for discharge. You will however, be able to file for a Chapter 13 bankruptcy, restructuring plan and address all tax debt issues.

Tax assessment 240 days prior to filing bankruptcy—You must prove that the IRS assessed the tax debt, eight months or more prior to filing bankruptcy.

Not the Result of Fraud or Evasion—For discharge, tax debt may not be part of a fraudulent return. Also, you may not be guilty of tax evasion in any way. Bankruptcy, as it involves tax debt can be complicated.

If you’ve been burdened with taxes you just can’t pay, it’s time to talk to someone who can help. Contact SunCoast Law to schedule a consultation now, (844) 330-2727.

We offer debt relief solutions in compliance with U.S Bankruptcy Code.