Tag: discharge tax debts

Does bankruptcy discharge IRS tax debts?

Does filing bankruptcy discharge federal Tax Debts?

Does filing bankruptcy discharge federal IRS tax debts?  Yes, some federal IRS tax debts can be discharged in a personal bankruptcy. Bankruptcy Code Section 523 provides exceptions to the general discharge order entered pursuant to Section 727 (Chapter 7) or Section 1328 (Chapter 13). Section 523(a)(1) does not discharge a taxpayer from income tax debt if the taxpayer violates any of the following 6-part test:

  1. Filed a fraudulent tax return;
  2. Willfully attempted to evade the payment of taxes or the government’s collection of the tax debt;
  3. Failed to file a tax return;
  4. Filed an untimely tax return less than two (2) years before the filing bankruptcy;
  5. Government assessed the income tax less than 240 days before the bankruptcy case filing; or
  6. The tax return due date is less than three (3) years before the bankruptcy case filing.

Tax debt and tax resolutions can be complex.  Therefore, you need a tax lawyer on your side.  Chicago tax lawyer and CPA Brian J. Thompson offers tax debt relief via installment agreements and offers-in-compromise. Brian@BrianThompsonLaw.com or 773-307-0181.