Legal Question in Bankruptcy in Indiana


can you file bankruptsy on money you owe the IRS? Please use email address submitted. This is a work computer. (I do not have a PC)

Asked on 11/28/07, 3:31 pm

1 Answer from Attorneys


Re: bankruptsy/irs

Yes. Income tax liabilities are dischargeable if they are more than 3 years old if you filed on time or 2 years old if you filed late. For income taxes that don't meet those requirements, chapter 13 allows you to wipe out the interest and penalties portion (which is usually a large portion) and pay just the tax over the course of the plan. While not the ideal choice, its still isnt a bad second choice. Trust Fund Penalty Taxes are never dischargeable as they are fiduciary taxes.

For more info on discharging tax liabilities, you can check out my web site the FAQs should help answer the majorty of your questions. Feel free to call or email me anytime. I'm always available.

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Answered on 11/28/07, 4:49 pm

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