“Dear Steve,
If I file bankrupcy will any of my IRS debt be forgiven? I owe for every year since 2000.
Julia”
Dear Julia,
Yes, you can discharge IRS debts in bankruptcy.
- The taxes must be more than three years old at the time the Bankruptcy was filed. The three-year period begins to run from the time the returns were due, (often that is April 15th of the following year, but sometimes a different date applies) plus any periods of extension;
- If the return was not filed on time, more than two years has expired since the return was filed;
- If there was an assessment, more than 240 days have expired from the date of the assessment;
- A lien on any assets which you intend to keep will not be automatically removed, even if the tax is discharged!
- There has been no fraud, and no intentional evasion of paying the tax.
You’ll really need to discuss your specific situation with a local bankruptcy attorney. You can click here to find a local bankruptcy attorney and come up with a game plan on how to time your bankruptcy.
Steve
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