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Is it true that you can file bankruptcy on taxes from the IRS if it's 3 years old?


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There are rules. You have to have filed your taxes on time and I believe that the taxes that are dischargeable have to be a min of 240 days old ....

Here I found an article for you:

Tax Relief in a Chapter 7 Bankruptcy

Chapter 7 Bankruptcy will eliminate all income taxes except the following tax liability:

a. Taxes for which a tax return was due to be filed within three years (plus extensions) prior to the date of filing bankruptcy. For example, the tax return for 2003 income taxes was due to be filed on April 15, 2004 (plus any extensions), and therefore, these income taxes cannot be discharged by filing bankruptcy on or before April 15, 2007 (plus the time of extensions); OR

b. Taxes assessed by the IRS within 240 days before the filing of bankruptcy. Assessment date is the date that tax liability is entered on IRS records; OR

c. Taxes not yet assessed but still assessable; OR

d. Taxes for which a tax return was filed late and filed within two years prior to filing bankruptcy; OR

e. Taxes of a debtor who committed fraud related to a tax return or willfully attempted to evade or defeat taxes sought to be discharged.

Income taxes that do not fail any of the above five tests may be wiped out in a Chapter 7 Bankruptcy.

Tax Relief in a Chapter 13 Bankruptcy

Taxes which are non-dischargeable in Chapter 13 are considered priority debts and must be paid in full during the Chapter 13 plan without interest.

Other Points to Remember

Dischargeable taxes are eliminated in Chapter 7 and are treated as general, unsecured creditors in Chapter 13.

Secured tax liens cannot be discharged in Chapter 7. The secured portion of tax liability must be paid during a Chapter 13, in full and with interest, but without further penalty.

See more here: http://www.alperlaw.com/taxes_and_bankruptcy.html

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