Question

Can I include tax money that I owe in my bankruptcy file?

I have taxes that I still owe. Is it possible to include this in my bankruptcy?
Share |

LawQA.com Answer Library

Answered By: Eranthe Law Firm
Everything must be included in your bankruptcy file. If you are asking whether the tax debt will be discharged that is a complex area. In general, unsecured income taxes that were first due more than three years before the bankruptcy is filed, for which a timely and non-fraudulent return was filed, can be discharged in full in any chapter of bankruptcy. Here are the Five Rules: 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 ago. 2. The tax return was filed at least two years ago. 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. It is complex because all the above depend on no tolling events happening. A tolling event stops the time from running. You need to get an expert's advice. If you did not file a return it will not be dischargeable. In other words if the IRS told you what you owed because you did not file you will continue to owe the tax.

Answer Applies to: California
Replied: 10/19/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Law Offices of Joseph A. Mannis
Since you are required to list all debts that you owe in your bankruptcy petition, its not just possible, you have to. However, just because you list it doesn't mean it is dischargeable. Taxes have to meet certain requirements regarding age and other criteria to be dischargeable. Either way, dischargeable or not, you must list them.

Answer Applies to: California
Replied: 10/14/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Janet A. Lawson Bankruptcy Attorney
That depends. Some taxes are dischargeable. If it is ordinary income taxes they have be over three years old and assessed for 240 days. You should get tax transcripts for the years involved and take them to a lawyer. Ask the IRS for "plain English" transcripts.

Answer Applies to: California
Replied: 10/14/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Bankruptcy Law office of Bill Rubendall
Most taxes are not dischargeable. Some old taxes can be discharged. Chapter 13 is one way to do a tax payment plan. Consult with an attorney as to your options.

Answer Applies to: California
Replied: 10/14/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Law Office of Jackie Robert Geller
Yes, but only certain taxes are dischargeable. Talk to an attorney right away.

Answer Applies to: California
Replied: 10/14/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Law Office Of Magnolia Zarraga
You must include everything you owe in your bankruptcy. Whether it's dischargeable is a different matter. You should consult with an experienced bankruptcy attorney we will be able to tell you if your taxes are dischargeable in the bankruptcy or whether you will have to continue to pay them.

Answer Applies to: California
Replied: 10/14/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Carballo Law Offices
Yes but the taxes owed (if for income taxes) would only be discharged if it has been more than three years since the tax return was due for the tax year you owe the money. Also, you must have filed over two years ago. There are other requirements and that needs to be discussed with an attorney specializing in bankruptcy. At this time, generally, you would only be able to discharge taxes for the year 2007 and before (assuming you filed more than two years ago and your return was not fraudulent). You have to report all taxes due in your bankruptcy petition but only those mentioned would actually be discharged or erased.

Answer Applies to: California
Replied: 10/13/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Ursula G. Barrios Law
It dependents.

Answer Applies to: California
Replied: 10/13/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Law Offices of Robert P. Taylor
Discharging taxes can become a complex issue, consult an experience BK lawyer. As a general rule, your can discharge personal income taxes that are 3 years over due, so long as you filed the appropriate return at least two years ago, the monies due are not a result of intentional tax evasion and no new taxes have been assessed within the last (can't remember for sure) 280 days. These periods can be extended for numerous reasons, so consult an attorney.

Answer Applies to: California
Replied: 10/13/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: The Schreiber Law Firm
If you 1) actually signed and filed the return, it was for a tax year more than 3 years ago (which will include 2007 after October 15 of this year), you have not been audited on any year prior to 2007, then that tax obligation is subject to being discharged. If you never filed the return, regardless of what year it was, or if it was for 2010, 2009 or 2008 (and 2007 if filed before October 15), it is not discharged in bankruptcy.

Answer Applies to: California
Replied: 10/13/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

More Questions on Bankruptcy


Ask Questions

Ask a local attorney a question for FREE.

Free Answers

FREE answer from a local attorney.

100% Anonymous

Your email is only used to send answers to you.

Ask Your Own Question

Free Legal Questions & Answers

This site is an exclusive listing brought to you by LawQA and is a form of advertisement. To visit the official website of this attorney please click here.