Can Your Tax Debt Be Removed In Bankruptcy?

The Law Office of Paul L. Urich, P.A., practices exclusively in the area of Chapter 7 and Chapter 13 consumer bankruptcy law. Among the questions I receive every week, people often want to know whether their federal income tax or other types of tax debt can be included in their Chapter 7 or Chapter 13 bankruptcy filing.

Under certain conditions, old tax debt can be discharged in a Chapter 7 filing. These conditions include:

You must be at least three years past the due date for filing the federal tax return, including extensions. In short, the federal government wants to know that you have tried to work out every means possible to pay the debt. If you received a statement for taxes owed anytime in the recent past, you will probably not be able to discharge the debt through Chapter 7. Under Chapter 13, however, all tax debt can be included in the debt restructuring plan.

The tax assessment must be at least 240 days old. You will be required to show that the IRS assessed the tax debt at least eight months prior to your filing date.

Finally, you must also be able to show that the tax debt owed is not the result of a fraudulent tax return and that you have not been found guilty of purposeful evasion of the taxes owed.

Address Your Tax Debt With The Help Of An Attorney

Tax issues for bankruptcy filing can be complex. If you are saddled with old, unpayable tax debt, talk to an Orlando tax debt and bankruptcy attorney at the Law Office of Paul L. Urich, P.A., to discuss your options. From my office in Orlando, I represent clients seeking consumer bankruptcy protection and debt relief in communities throughout central Florida. Call 407-915-0842 or fill out an online contact form to discuss your case with me at no charge.

I am a debt relief agent. I help people file for bankruptcy relief under the Bankruptcy Code.