Although the IRS does not like to admit to it, many IRS taxes, penalties and interest do qualify for complete discharge when a taxpayer declares bankruptcy. This does not mean that everyone qualifies, it is important that you understand the eligibility requirements prior to filing for bankruptcy.
It is essential for a taxpayer to determine if their taxes qualify under the law for discharge in bankruptcy prior to filing their petition. The tax experts at Tidy Tax Services can help you understand the laws and regulations that will determine if you qualify or not. It should be noted that there are three rules that a taxpayer must meet in order to have their income taxes discharged in bankruptcy, these are:
1. The tax liability must be at least three years old 2. The tax returns that pertain to the tax liability must have been filed at least 24 months before the date of the petition 3. 240 days must pass from the date of the assessment of the tax liability
In most cases, if a taxpayer meets these three criteria, they qualify to have their tax liability discharged in bankruptcy.
Benefit of Hiring an Expert
In many cases, taxpayers will file for bankruptcy without truly understanding whether their income tax liability qualifies to be discharged under the law. This will cause many problems for a taxpayer when they realize that if they would have hired an expert, they could have had their tax liability discharged in bankruptcy if they would have understood the law better. If may not seem important, but an expert can greatly increase your chances of discharging your tax liability in bankruptcy. Additionally, we can assess your unique situation and determine if bankruptcy is the best solution for your individual needs. While it is possible to qualify for a complete discharge of your IRS tax liability in bankruptcy, it may not be the best option for your unique situation. Our tax experts will help you understand your options and establish the best tax relief strategy that fits your needs.