Salinas Tax Debt Attorney
Not all tax debts are capable of being discharged in bankruptcy. The bankruptcy petitioner (also known as “debtors”) must have tax debts that meet five criteria for discharge.
Tax debts are associated with a particular tax return and tax year. The bankruptcy law lays out specific criteria for how old a tax debt should be.
Five Rules to Discharge Tax Debts
If the income tax debt meets all five of these rules, then the tax debt is dischargeable in Chapter 7 and Chapter 13 bankruptcy petitions.
1. The due date for filing a tax return is at least three years prior to filing bankruptcy.
2. The tax return was filed at least two years prior to filing bankruptcy.
3. The tax assessment is at least 240 days old.
4. The tax return was not fraudulent.
5. The taxpayer is not guilty of tax evasion.