By: Darrell Castle
Hi, I’m Darrell Castle and I’m an attorney licensed to practice law in the state of Tennessee and bankruptcy can do a lot for your tax debt if it’s income tax — simple income tax. Not sales tax or employment tax or something like that.
But if it is income tax, and you filed your return on time, and your tax is more than three years old, then it is completely dischargeable. That means if you did a Chapter 7 bankruptcy, you’ll never have to pay that tax or worry about it again.
So by 3 years old, I mean this coming April 15th — April 15, 2015 (just a few more days — 2011 taxes would be due. And they would be dischargeable. So remember now when I mean due, I mean this year April 15th, the 2014 taxes will be due. So they’re due April 15th of the next year.
Now, let’s say you had some income taxes that were not dischargeable because they’re not at least three years old and you’re having trouble paying them. Well that can be included in a Chapter 13 and paid back in a small affordable payment over a period of years rather than having your property seized or something like that.
There are a lot of things you can do with taxes and bankruptcy to get relief. It’s either completely dischargeable or it is payable in a Chapter 13. The IRS would be bound to accept that payment that’s proposed to them and accepted by them in Chapter 13.
So there is relief if you have simple income tax. Not sales tax. Not employment tax. And if there is no fraud involved. You can’t do anything to evade taxes and intentionally try to deceive the government or anything like that. You can’t face any charge like that or your taxes are non-dischargeable.
So 3 years old income tax, completely dischargeable in Chapter 7 or payable in Chapter 13, folks.
Want a free case evaluation?
If you’re struggling financially and want to talk to someone experienced about your options, then our FREE bankruptcy consultation is perfect for you. Call (901) 327-2100 today to schedule your appointment. Or you can fill out the form to the right of this page to have someone from our office contact you!