Wiping out taxes in Bankruptcy
Here are the basic rules for wiping out taxes in bankruptcy. This is a complicated subject so if this page gives you a headache, don’t worry. Just contact us.
You must meet all five of the below rules to wipe out your income taxes in a bankruptcy:
- The tax return in question must have been due more than 3 years prior to the date you file bankruptcy. The 3 year period is lengthened under a variety of circumstances, so talk to Pete about this before you file. If you file before the 3 years run by mistake there’s not much he can do to help you.
- The tax return in question must have been actually filed more than 2 years prior to the date you file bankruptcy. (Some courts have held that taxes from late filed returns can never be discharged. Other courts have held that taxes from late filed returns may be discharged if the return was filed before the taxing authority assessed the tax. This is an evolving area of the law.)
- The IRS or WDOR must have assessed the tax more than 240 days prior to the date you file bankruptcy.
- The tax return in question cannot have been fraudulent.
- You must not have filed a fraudulent return or willfully attempted to evade or defeat the tax.
Pete also is also a Certified Public Accountant (CPA) and helps people with tax problems.
This website does not create an attorney-client relationship. The information on this website does not constitute legal advice. You are urged to obtain the advice of an experienced bankruptcy attorney regarding your personal situation.