Skip to main content

Chapter 7. What is the most recent taxes that are possible to discharge. I am confused by the 3 year rule

Riverside, CA |

Just wondering. if someone can recap and explain the discharging taxes in bankruptcy rules

Attorney Answers 4

Posted

See,

Mark as helpful

2 lawyers agree

3 comments

Gary D. Bollinger

Gary D. Bollinger

Posted

Oops, <http://www.avvo.com/legal-guides/ugc/are-income-taxes-dischargeable>

Asker

Posted

Thanks but the link didn't work. Said might be a typo in it.

Gary D. Bollinger

Gary D. Bollinger

Posted

The link was copied from the URL by "select all" and then the command "copy". I pasted the results into the answer I regret that my efforts failed to provide you with useful information; I have had this problem before with Avvo hyperlinks and I do not know the remedy. . .

Posted

The most recent income taxes you can discharge in BK are 2009 taxes, assuming you filed your return April 15, 2010.

Mark as helpful

1 found this helpful

9 lawyers agree

Posted

In a Chapter 7 you cannot discharge tax liability for the most recent three years before the filing of the bankruptcy on filed returns. If the liability is more than three years old and the returns for those years has been filed then it can be discharged.

Mark as helpful

6 lawyers agree

1 comment

Gary D. Bollinger

Gary D. Bollinger

Posted

I suspect that Brad meant to write that there is an exception, holding that discharge is NOT available for taxes returns due from a late tax return--even if more than three years old--if filed within two years of filing the bankruptcy petition.

Posted

There is more to consider than the 3 year element. Some tax liabilities are not dischargeable even though many more than three years have passed. One of the reasons for your confusion is that it is confusing to everyone. Even if you take the time to study and work through the entire analysis and then apply it to your specific situation, it still may be confusing. To get the best outcome, you should seek both bankruptcy advice and tax advice to deal with complex issues. The cost of getting good advice, will probably save you time, stress, and money in the long run.

Mark as helpful

Tax law topics

Top tips from attorneys

What others are asking

Can't find what you're looking for?

Post a free question on our public forum.

Ask a Question

- or -

Search for lawyers by reviews and ratings.

Find a Lawyer

Browse all legal topics