In Some Cases Bankruptcy Discharges IRS Debts
Although not considered by most people to be a solution to their IRS problems, in some cases, IRS debts can be discharged in bankruptcy providing they meet three conditions. It is important that your tax professional evaluate your case to be sure that it meets these conditions, before you will know if bankruptcy is a valid option for you.
First, all taxes that you are seeking to be discharged must be due, including extensions, for at least three years.
Second, all returns, even if filed late, must have been filed for at least two years.
Third, the tax liability that you are seeking to have discharged must have been assessed for at least 240 days.
Once you know if your case meets these criteria, then you need to decide on the type of bankruptcy that is appropriate for you. Essentially, there are two types of bankruptcies for individuals: Chapter 7 and Chapter 13. Chapter 7 is a liquidation bankruptcy and Chapter 13 is a reorganization bankruptcy. Any further discussion on this subject is beyond the scope of this article, however, if your case does warrant a bankruptcy option, we can discuss that further in person.
As a local Sarasota Tax Attorney concentrating in IRS Problem Resolution, I can help you decide if Bankruptcy is the right solution to your IRS tax debt problem. Please call the Law Office of Mary E King for your free consultation at 941.906.7585 or email Sarasota Tax attorney Mary King Esq. for your free IRS Tax help consultation.