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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17252
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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Can filing chaper 7 relieve you of Irs and state taxes owed

Customer Question

Can filing chaper 7 relieve you of Irs and state taxes owed because you are unable to pay?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 5 years ago.
WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarification, 

WALLSTREETESQ :

You can discharge some taxes, but they have to be debts that fall under the rules,

WALLSTREETESQ :

Income taxes can be discharged in bankruptcy if all of the following conditions are met, otherwise the taxes will be due at the end of the bankruptcy.



  • They are income taxes (not payroll, or debt accumulated from fraud penalties, or trust fund taxes)

  • The taxes were assessed at minimum 240 days before you file for bankruptcy

  • The taxpayer did not commit fraud or try to evade taxes

  • The taxes have to be due three years from the date of your bankruptcy filing (includes extensions)

  • All tax returns were filed at least 2 years before filing for bankruptcy (a substitute return is NA)

    ** You must also prove to the court that you filed taxes returns for the last 4 years


WALLSTREETESQ :

This would apply to Federal and State taxes,