Legal Question in Bankruptcy in Indiana

bankruptsy/irs

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

Martin Hancock MARTIN HANCOCK

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 www.mh-in.com 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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