Discharging taxes..how to????

[no_it_all]

Tax year is 2000
Were filed on time
Currently they are being paid on an installment plan
Debtor is seeking relief in a Chapter 7

It seems that the three year rule is met, as is the requirement that no fraud was committed. What else?? Anyone out there have success discharging Fed Tax (including penalties and interest??).........TIA

[Minnymouth]

The fact that you are on a payment plan for back taxes - may result in not being able to discharge these old taxes in bankruptcy.....

Only an attorney can advise you on this..... IRS is a tricky thing and discharging taxes does have it rules and regulations....

Minny

[down @ out]

Discharging Federal Taxes in Bankruptcy

Actually there are a number of web resources to help with this. Just key in bankruptcy and the IRS. A wealth of information is out there.

Believe things maybe different under the new rules maybe not. I filed bankruptcy under the old laws and may have simply got lucky. Not sure yet.

Believe the toughest hurdle is the 240 day rule. That is once the taxes are assessed the irs must have 240 days to collect. This can be tough because taxes are generally assessed later than the year in issue if the assessment resulted from an audit.

Once your bankruptcy is discharged the IRS bankruptcy group will let you know in about 45 days if the taxes have been discharged.

The existence of a payment plan in effect has no impact.


Regards,

[SinkingFast]

I know there are some posters here with tax issues much older than from 3-4 years ago and they are still paying. BK only took care of some of their tax debt while other portions remained.

Not sure if the IRS has any real rhyme or reason to what they allow to be discharged while other debt isn't.

While you might research and learn, the particular situation should really be addressed with an attny. They'd know better what your chances are.

[no_it_all]

<snip>
Believe the toughest hurdle is the 240 day rule. That is once the taxes are assessed the irs must have 240 days to collect. This can be tough because taxes are generally assessed later than the year in issue if the assessment resulted from an audit.<snip>

Yes, I found out also that taxes are generally not due at the end of the year...An example would be hoping to have taxes discharged for tax year 2003 and filing your bk in March of 2006...Many would assume they met the three year rule, when in fact they would have to wait until April 17th or so.

The existence of a payment plan in effect has no impact.

Good news indeed!

[AAAArt]

Under old laws, I had taxes for '92, 93, 99, and '00 discharged and I was on a repayment plan when I filed. One lien went off in Jan. and was not re-filed by the IRS and the otheer is scheduled to expire in 11 days.
Don't know what the new laws state. Art