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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12023
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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My husband and I spoke with a Tax attorney regarding our

Customer Question

My husband and I spoke with a Tax attorney regarding our monthly payment to the IRS in the amount of $900. The attorney reviewed our transcripts we provided and advised us that all years except for 2013 iao $20,000 would be able to be done away with if we filed Chapter 7. My question is this, do we need to wait until a certain date to include 2013 in the Chapter 7?
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

Hi,

...

Here are the rules ... as you can see there is more information needed than the tax year itself.

..

But if you meticulously run your situation against these 5 rules, you'll (1) see what must have been done and (2) when it will be ok ... to file.

...

  • The taxes are income taxes. Taxes other than income, such as payroll taxes or fraud penalties, can never be eliminated in bankruptcy.
  • You did not commit fraud or willful evasion. If you filed a fraudulent tax return or otherwise willfully attempted to evade paying taxes, such as using a false Social Security number on your tax return, bankruptcy can't help.
  • The debt is at least three years old. To eliminate a tax debt, the tax return must have been originally due at least three years before you filed for bankruptcy.
  • You filed a tax return. You must have filed a tax return for the debt you wish to discharge at least two years before filing for bankruptcy. (In most courts, if you file a late return (meaning your extensions have expired and the IRS filed a substitute return on your behalf), you have not filed a "return" and cannot discharge the tax. In some courts, you can discharge tax debt that is the subject of a late return as long as you meet the other criteria.)
  • You pass the "240-day rule." The income tax debt must have been assessed by the IRS at least 240 days before you file your bankruptcy petition, or must not have been assessed yet. (This time limit may be extended if the IRS suspended collection activity because of an offer in compromise or a previous bankruptcy filing.)
Expert:  Lane replied 1 year ago.

He is likely talking about the three year rule.

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Due date for 2013 was Apr 15 2014. Three years from that is Apr 15 2017

Expert:  Lane replied 1 year ago.

I hope this has helped. … Please let me know if you have any questions at all.

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If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the stars or faces on your screen, and then clicking “submit")

Otherwise I’m working for no crediting at all here

...

Thank you!

Lane

I hold a law degree, (Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986.