Discharging Income Taxes in Bankruptcy – Can You Do It?
Can you get rid of (bankrupt or discharge) tax debts in bankruptcy? The answer is “yes,” depending on the type of taxes and other factors.Bankruptcy tax dischargeability analysis is very tricky and even experienced bankruptcy lawyers can have difficulty accurately determining whether a client’s tax debts qualify. This will be a rather complicated and sophisticated article, but regardless of whether you completely understand it or not, you should always consult with a professional regarding your specific circumstances. Similarly, please understand that these bankruptcy laws are always changing, so what is contained in this article may not be current when you read this; another reason to always seek the advice of a bankruptcy attorney. How Can Taxes Be Discharged in Bankruptcy?The most common type of tax that people owe are income taxes due to the Internal Revenue Service (“IRS”) and to their State Tax Board (in California, this is the Franchise …
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