When discussing bankruptcy issues in general with people, they are often surprised that it IS possible to dischargeable some tax debts.
Key word? “SOME . . . ”
Income taxes are not dischargeable unless a three-part test is met.
1. The tax return must have been due at least three years before the bankruptcy was filed
2. The return must have been filed at least two years before filing for bankruptcy, and
3. The taxes must have been assessed for at least 240 days.
NOTE: Trust fund taxes (taxes withheld by an employer from employee wages and sales taxes) are not dischargeable.
If you are a Massachusetts resident with questions about your IRS or other debt, please contact me at (857) 526-1355 or Help@QuincyLegal.com for a free, initial consultation. Together, we will determine whether or not a Chapter 7 bankruptcy is the best way to eliminate your debt.
Kara O’Donnell, Esq.
O’DONNELL LAW OFFICES