Income Taxes

[Ineedhelp2]

Some income taxes can be discharged according the following information. But I'm having some problems figuring it out:

Tax Relief in a Chapter 7 Bankruptcy

Chapter 7 Bankruptcy will eliminate all income taxes except the following tax liability:

a. Taxes for which a tax return was due to be filed within three years (plus extensions) prior to the date of filing bankruptcy. For example, the tax return for 2003 income taxes was due to be filed on April 15, 2004 (plus any extensions), and therefore, these income taxes cannot be discharged by filing bankruptcy on or before April 15, 2007 (plus the time of extensions); OR

b. Taxes assessed by the IRS within 240 days before the filing of bankruptcy. Assessment date is the date that tax liability is entered on IRS records; OR

c. Taxes not yet assessed but still assessable; OR

d. Taxes for which a tax return was filed late and filed within two years prior to filing bankruptcy; OR

e. Taxes of a debtor who committed fraud related to a tax return or willfully attempted to evade or defeat taxes sought to be discharged.

Income taxes that do not fail any of the above five tests may be wiped out in a Chapter 7 Bankruptcy.

http://www.alperlaw.com/taxes_and_bankruptcy.html

[Ineedhelp2]

I think I get it now. Taxes that were due three years before filing bk can be dismissed, but newer tax obligation cannot.

[down @ out]

taxes after bankrutpcy

Keep in mind that if you have a debt with the irs that the stay will stop collection action, but if they have a lien on any property that will not go away.

In my bankruptcy I owed the irs a considerable amount of money and frankly even after reading the rules was not sure what would happen. Also keep in mind the bankruptcy court can determine if the taxes should be discharged if you want them to decide. Just file a motion to determine dischargability with the court.

Anyway I filed a chapter 7 and listed it on my bankruptcy as a debt that would not be discharged. The irs bankruptcy unit looks at all bankruptcys after the discharge and decides based on their review if the taxes are discharged.

I can tell you right now if they believe they are still owed the money they will come after you quick and hard.

The irs unit decided my taxes were dischargable and hopefully it is over. Watch them like a hawk.

Good luck