Bankruptcy & Taxes
Many taxpayers (and some lawyers) are often under the mistaken belief that tax liabilities are not dischargeable in bankruptcy.
Generally, older federal income tax debts are dischargeable in bankruptcy. These old tax debts are tax debts that are more than 3 years old, for which the tax return was filed more than 2 years ago, and the taxes were assessed more than 240 days prior to filing the bankruptcy petition. In addition to being able to discharge federal income tax debts in bankruptcy, filing a bankruptcy petition halts most of the IRS’s collections activities.
The bankruptcy tax laws are constantly changing. An experienced tax attorney can help you determine if bankruptcy is a viable option for resolving your tax debt problem. Our attorneys have an in-depth knowledge of both tax and bankruptcy laws. Some of our attorneys represented the IRS as Special Assistant U.S. Attorneys and know how the tax and bankruptcy laws apply to your situation. Our attorneys can conduct an analysis of your tax liabilities and determine if you can get all or some of the liabilities discharged in bankruptcy. We also represent taxpayers in Bankruptcy Courts.