Federal income taxes are the only taxes that can be discharged in bankruptcy proceedings, preferably Chapter 7 bankruptcy, if you meet all of the following requirements:
- The taxes must be income taxes. Taxes due to fines or penalties cannot be discharged in bankruptcy.
- You did not file a fraudulent tax return or tried to willfully evade taxes.
- The tax return you are discharging in your bankruptcy must have been originally due at least three years before the bankruptcy. For example, if you are filing for bankruptcy in 2014, the taxes you are discharging must be from at least 2011.
- You filed a tax return for the taxes you want discharged at least two years before filing for bankruptcy. For example, if you are filing for bankruptcy in 2014, the tax return for the discharge must have been filed at least in 2012.
- The taxes you are discharging must have been assessed by the IRS to you at least 240 days before you file for bankruptcy.
Keep in mind that a bankruptcy proceeding will not discharge any tax liens assessed to your property before the bankruptcy, and will remain attached to your property.
From our offices in South Florida, we represent clients throughout Miami-Dade, Broward and beyond. Call us at (786) 837-6787 or e-mail us to schedule a consultation with an experienced South Florida tax attorney.