One of the things that make people go crazy during bankruptcy is their income tax debts. However, if you have a bankruptcy lawyer by your side, you will be able to make the entire process a lot smoother for yourself. Declaring bankruptcy means that you are unable to pay the debts you owe to creditors. Therefore, with the help from your lawyer, you will be able to file for the most suitable bankruptcy option which will allow you to get rid of your income tax debts. Read onto find out how!
Do you meet the Requirements of Income Tax Discharge in Bankruptcy?
It is best to talk to your attorney about rules and laws of bankruptcy as they have appropriate knowledge and experience in handling bankruptcy cases and can provide solid advice during this challenging time. Your lawyer will discuss the requirements of income tax discharge in bankruptcy that are given below.
- You did not commit any fraud in order to eliminate the taxes. This means that if you reported false income or tax debts to the IRS, you will not be able to get your income taxes removed from your debt.
- The last due date of your income tax debts was more than three years ago including extension periods.
- The taxes were filed at least two years ago. This is for those who filed a late return.
- There has been no assessment of taxes within the last 240 days. This means that if the IRS is conducting a tax audit, you have to wait 240 days to file for income tax discharge in bankruptcy.
- The taxes are income based can be eliminated and other types of taxes including payroll taxes, sales taxes, and trust fund taxes will not be discharged.
If you meet all of the above criteria, you can discuss with your attorney and build a strong case for exemption of your income taxes.
Should you go for Chapter 7?
Upon discussion with your bankruptcy attorney, you will come to know that you can get income tax discharged in chapter 7. If your income tax doesn’t meet the requirements mentioned above, you cannot get your income tax waved off. However, if you qualify, you get a chance to get these taxes exempted.
Take Help from a Bankruptcy Attorney
Filing for bankruptcy can be a challenging process, especially for those who are not aware of bankruptcy laws, rules, and regulations. If you are having trouble finding a solution to your debt problems, you should consider consulting a bankruptcy lawyer. Bankruptcy lawyers have hands-on experience working with different cases and are up-to-date with bankruptcy laws. Therefore, hiring a bankruptcy lawyer is your best bet at solving your debt issues. Your lawyer will also provide you guidance for choosing the right type of bankruptcy that will enable you to get your income tax waved off.
If you have any queries or concerns regarding bankruptcy laws, feel free to contact our professional bankruptcy lawyers that will help you every step of the way. Contact the Bankruptcy Attorneys at Brock & Stout