Wednesday, May 23, 2012

Bankruptcy: Can My Taxes Be Discharged?


Can Taxes owed to state or federal entities be discharged in bankruptcy? Well that depends. The bankruptcy code outlines what taxes may be discharged. For a brief overview, there are six requirements (you must meet all six requirements):
  1. THREE YEAR RULE: The three year rule: for the tax year in question, the most recent due date for filing the return is more than three years old;
  2. TWO YEAR RULE: A tax return has been filed at least two years preceding the filing date of the bankruptcy;
  3. TWO HUNDRED AND FORTY DAY RULE: The tax claim was assessed at least more than 240 days preceding the filing date of the bankruptcy;
  4. TAX IS ASSESSABLE BUT NOT YET ASSESSED;
  5. NON-FRAUDULENT RETURN; and
  6. NO WILLFUL TAX EVASION.
Obviously, the above is only a preliminary test to see if you need to look further to see is a tax due to a state or federal entity may be discharged. If you think taxes you owe might be dischargeable, you should seek the advise of a bankruptcy attorney.

3 comments:

  1. Hi, it’s the first time that I visit your website. Nice info, thanks!
    tax attorneys florida

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  2. Hi, it's the first time I visit your website. Nice info, thanks!

    ReplyDelete
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