Many taxes can be discharged through bankruptcy, but only in specific circumstances:

  • The due date for filing a tax return has to have been at least 3 years ago.
  • Your return must have been filed at least two years ago.
  • The tax assessment needs to be at least 240 days old.
  • You can’t have committed tax fraud or tax evasion.

(If you filed extensions, they can be included in the math for the above requirements.)

These rules usually cover income taxes, but not all other kinds of taxes; and it doesn’t include income taxes less than three years old.

Taxes that don’t fall under these guidelines may still be handled through bankruptcy. Rather than discharging them through Chapter 7, a bankruptcy attorney might recommend using Chapter 13 to pay them off through a feasible payment plan.

You have to be careful with anything involving the IRS because the wrong move can not only hurt your case, but affect your finances and assets. Each individual case is different. We offer free consultations to speak with a qualified bankruptcy attorney in Memphis.

If you’re overwhelmed by taxes and want to discuss what options you might have, contact us today or call us at 901-327-2100.