2006-12-29 16:31:27 · 13 answers · asked by doeboy 1 in Business & Finance ➔ Taxes ➔ United States
Individual federal taxes can be discharged under Chapter 7 bankruptcy under certain circumstances. To start out, the original filing due date of the return under which the taxes are assessed must be more than three years ago. Next, the taxes must have been assessed more than two years ago. Finally, you can not have been in bankruptcy within the past 240 days. There are other specific circumstances that will cause each case to be different. Search online for the "Internal Revenue Manual" (NOT Internal Revenue Code) and research the specific situation. The Internal Revenue Manual is the rule book the IRS plays by.
2006-12-29 18:28:47 · answer #1 · answered by Lee 5 · 3⤊ 0⤋
Federal income taxes more than 3 years old (from assessment) are discharged in bankruptcy..
See 11 U.S.C. 523(a) for the exceptions to discharge.
2006-12-31 10:10:49 · answer #2 · answered by woodluvto 2 · 0⤊ 0⤋
At this website you could resolve your situation rather speedy: FINANCE-strategies.documents- RE Can federal tax liabilities from yrs ninety six ninety 8 ninety 9 2000 be discharged by financial ruin? I did document tax returns on time for each year in question
2016-12-15 04:16:30 · answer #3 · answered by apollon 3 · 0⤊ 0⤋
Nope! Always pay your taxes before any other bills, because taxes can not be discharged in a bankruptcy.
2006-12-30 01:48:53 · answer #4 · answered by William B 2 · 0⤊ 0⤋
In some cases if they were assesed more than two years ago. Consult IRS Publication 908
Also you would have to consult with your bankruptcy attorney because state laws could have something to do with it
Also discharged debts are not taxable income ... see IRS form 982, line 2a
2006-12-29 17:33:19 · answer #5 · answered by sameyeyam5 1 · 1⤊ 0⤋
Absolutely not. Your are liable for any and all federal taxes owed. If you owe a lot of money, you're best bet is to contact the IRS and work out a payment plan. They are a lot easier to work with if you make the first move. Don't make them come after you because it will not be pretty.
2006-12-29 16:35:22 · answer #6 · answered by David L 6 · 1⤊ 1⤋
If the bankruptcy results in discharged debt, that is considered taxable income.
2006-12-29 16:40:25 · answer #7 · answered by Dana Katherine 4 · 0⤊ 2⤋
The government will be notified that you are filing. They always have an officer show up to exclude the debt. Sorry. You'll still owe the government.
2006-12-29 16:36:44 · answer #8 · answered by anon_y_muse 2 · 0⤊ 1⤋
what is bankruptcy?? i saw this show once and the girl was named ripsi. that kind of sounds like bankruptcy. cool huh?? omg
2006-12-29 16:43:21 · answer #9 · answered by lane 2 · 0⤊ 2⤋
there used to be an old saying which goes "There is
nothing on this earth that is absolute, except DEATH AND
TAXES. Myself, I add the Lord to that list.
2006-12-29 16:42:19 · answer #10 · answered by Anonymous · 0⤊ 1⤋