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Can tax be totally discharged through bankruptcy?

Submitted by Peterj on Sun, 02/03/2019 - 22:04

Can tax be totally discharged through bankruptcy? Does it depend on any factor?

In case of Chapter 13 bankruptcy, you can't wipe out tax debts; instead, you repay the tax debts through a repayment plan. Therefore, it may require to repay your tax debts along with other debts in a period of 3-5 years.

Submitted by Ryan Miller on Mon, 02/04/2019 - 02:06

Ryan Miller

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You can discharge tax in bankruptcy under the following circumstances:

  1. You have not committed any income tax fraud

  2. The tax debt is 3 years old

  3. You have filed the income tax return at least 2 years ago

  4. The IRS has assessed the income tax debt 240 days before filing bankruptcy

Submitted by ditchdebt on Mon, 02/04/2019 - 01:19


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