February 27, 2020

Can I File Bankruptcy on Tax Obligations

In certain circumstances, you can discharge stale income tax obligations in bankruptcy.   Trust fund taxes are not dischargeable.  The general rules for income tax discharge are as follows:

1. Tax return was filed timely and liability is for a tax year more than three years prior to the bankruptcy filing

2. The tax return for the year in question must be more than 2 years prior to the bankruptcy filing;

3. The tax must have been assessed more than 240 days prior to the bankruptcy filing.

If you think that your income tax may be dischargeable, it is essential that you have accurate information about the dates your tax returns were filed and that your tax obligations assessed.  Further you need to know if the IRS or state has filed a tax lien against you.   This important information can be found on a tax transcript, which can be obtained directly from the IRS or state department of revenue.  Your credit reports may or may not have accurate tax lien information.

If you want to learn more about bankruptcy, click here to go to the Ginsberg Law bankruptcy web site.

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Jonathan Ginsberg

Attorney at Ginsberg Law Offices
Attorney Jonathan Ginsberg helps taxpayers work out negotiated settlements of tax debt with the IRS and Georgia Department of Revenue.

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