If you are sick and tired of the tax man banging down your door for back taxes and are wondering if filing bankruptcy will make him go away then you have come to the right place. Unfortunately, the answer is not an easy "yes or no" as there are a number of variables that go into whether or not you'll be eligible to discharge your back taxes by filing a Chapter 7 bankruptcy or a Chapter 13 bankruptcy.
Remember that how your back taxes are handled is reliant on whether you're filing Chapter 7 or Chapter 13 bankruptcy. Under Chapter 7 bankruptcy your allowable debts will become fully discharged upon liquidations. Under Chapter 13 bankruptcy some of your debts may be ultimately discharged but you will need to pay off the bulk of them under your repayment plan.
Requirements for Salary Tax Discharge Through Bankruptcy
Getting rid of all your back taxes simply by filing bankruptcy is not that easy. There are several requirements that you must meet in order to legally discharge your back taxes by filing bankruptcy.
1. The tax return can't be fraudulent
2. The tax assessment must be at least 240 days old
3. The tax return due date was at least three years ago
4. The tax return was filed at least two years ago
5. You cannot be guilty of tax evasion
If you're still unsure about the requirements and whether or not they prohibit or allow you to discharge your taxes with a Chapter 7 or Chapter 13 bankruptcy then do something about it. Take initiative and contact a licensed bankruptcy attorney today to go over your situation. The attorney should be able to answer any questions you have pertaining to your back taxes and whether or not bankruptcy is the answer for you.
More on Back Taxes and Bankruptcy
You must also prove that you've filed your last four tax returns with the IRS and that those previous four tax returns were filed no later than the date of your first meeting with lenders following your bankruptcy filing. You'll also be required to provide copies of those tax returns to the bankruptcy court and to inquiring lenders.
Death and taxes are the two constants in life so it is no wonder that discharging your back taxes is not so simple. We all must pay them throughout our life but if your back taxes are topping off your list of debts then you could be able to discharge them, but only if you meet the really strict requirements. Talk to a bankruptcy attorney today to learn if your back taxes can be discharged with a bankruptcy and whether or not that is your ticket.
