Can Bankruptcy Eliminate Back Taxes?

Woodbridge Township Bankruptcy Attorneys Helping You Navigate Tax Debt

If you are behind on paying off your taxes, you may be wondering if bankruptcy is a solution. The answer is that only some tax debt can be eliminated through bankruptcy if you meet certain requirements. Our experienced tax debt lawyer in Woodbridge Township can work alongside you to ensure that you understand all your options for debt relief and which types of back taxes are eligible for being discharged.

Can my tax debt be discharged through bankruptcy?

Bankruptcy can only affect federal income tax debt. If you meet all other requirements, Chapter 7 can discharge back income tax and Chapter 13 can provide an alternative repayment plan. Another basic requirement is that you did not purposefully commit fraud or tax evasion. The other requirements for getting your back taxes discharged have to do with time limits. In order to be eligible for tax debt relief, your situation must fit very specific and stringent parameters.

File Two Years in Advance.

One basic requirement for having back taxes discharged through bankruptcy is that you have filed for taxes at least two years before filing for bankruptcy. Even if you have not paid off all your taxes, it is necessary that you have at least filed.

Back Taxes Must Be 3 Years or Older.

Only back taxes that are at least three years old are eligible for being discharged. More recent tax debt from the last two years cannot be eliminated.

Taxes Must Be Assessed 240 Days in Advance.

Back taxes must have been assessed at least 240 days (which is about eight months) before the date on which you filed for bankruptcy. Tax assessment refers to the IRS’ task of determining the value of your tax debt. Alternatively, you would meet this requirement if the taxes haven’t been assessed at all yet.

Pursue Tax Debt Relief Today!

Our Woodbridge Township tax debt relief lawyer is here to help you discharge back taxes through bankruptcy. When you come to Vaisman Law Office, you receive one-on-one attention and hands-on guidance. We make sure that all of our clients are fully informed of their legal options and how the bankruptcy process works. With more than 15 years of legal experience, we have the in-depth understanding and extensive knowledge of bankruptcy law that you need during this time.