Taxes: priority vs. non-priority Schedule E

[wipetheslate]

I owe some taxes, but as of the 25th of this month they will qualify for discharge following the 3yr/2yr/240day rule. Obviously, I will be waiting until then to file. I do not owe any taxes that will not qualify for discharge after the 25th.

So, do I even list my taxes at all on Schedule E since none will be priority when I file? There are separate columns for priority and non-priority, but since I would put -0- in the priority column I question whether I should even fill this form out at all except to check that I have no creditors holding unsecured priority claims.

[BnkrptcyLwyr]

If the taxes do not qualify as priority taxes, then you would put them on Schedule F. The important thing is that the IRS is notified.

A word of warning, make sure that you know when the taxes were assessed as well. Many a debtor has been tripped up by the dates in discharging taxes.

[HHM]

Dischargeable taxes go on Schedule F.

As was pointed out, just make sure you know how the rules works. However, assuming you filed your tax returns on time, the latest year eligible for discharge is 2006. Taxes more recent than that will be non-dischargeable.

[BnkrptcyLwyr]

Also, be careful of amended returns. Just because you were initially on time in filing your taxes doesn't mean you're still outside the time periods when you amend your return later, or the IRS makes an adjustment.

[wipetheslate]

Thanks, folks. Yes, these are 2006 taxes.

[tcreegan]

Hi wipetheslate,

I think you would list the taxes as a priority unsecured....even if dischargeable, until actually discharged wouldn't they remain priority unscecured?

Of coure I always take the CYA approach....

Tom in Colo

[HHM]

Hi wipetheslate,

I think you would list the taxes as a priority unsecured....even if dischargeable, until actually discharged wouldn't they remain priority unscecured?

Of coure I always take the CYA approach....

Tom in Colo

Nope, they are schedule F, non-priority, unsecured.

Keep in mind, if you read the code, all "priority taxes are non-dischargeable." So, if you think your taxes are dischargeable, you list them on Schedule F.

[tcreegan]

Thanks HHM, it makes sense when you put it that way!

Tom in Colo