Tax Debts In Bankruptcy

tax debtMost of us tend to ignore taxes once April 15th has passed, unless you are one of many who end up with tax liabilities. When you can’t afford to pay your taxes you may begin receiving notices from the IRS or even debt collection calls. Tax debts are serious business and should never be ignored.

Finding Relief

Bankruptcy is one option for dealing with tax debts. However, not all tax debts are eligible for bankruptcy relief.  In order for a tax debt to qualify it must meet the following conditions:

  • The taxes are income taxes.
  • The taxes have a tax return on file with the IRS.
  • The tax debts must be at least 3 years old, and have  been assessed by the IRS at least 240 days prior to filing.
  • The taxes must not be associated with any fraudulent actions or attempt to evade payment.

If your tax debts meet these requirements or you have additional questions about resolving tax debts in bankruptcy, contact a Tampa bankruptcy lawyer to review your options.

If your tax debts do not meet these requirements, you can still find help with your debt payments. The IRS offers two programs to help you resolve your liabilities. The IRS installment plan can offer you a chance to repay your debts in a series of smaller payments over the course of two to three years. If you are experiencing a financial hardship and are unable to meet your debt responsibilities, you may be able to settle your debts with the IRS through an Offer In Compromise.




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