Bankruptcy Lawyer Handling Tax Problems in Columbus
When you file for a personal bankruptcy and back taxes are owed, make no mistake about it, the IRS and the state want their money.
Fortunately, under the current bankruptcy laws, certain taxes and back taxes may be discharged or excused by the bankruptcy court as part of the bankruptcy process.
The only type of taxes that are eligible to be discharged or excused in a personal bankruptcy are personal income taxes. Business tax debt from unpaid payroll taxes and federal and state withholding or "trust fund" taxes that are collected by employers on behalf of the IRS or state are never dischargeable. Tax debt from unpaid personal income tax must meet a five-requirement threshold before they can be considered for IRS discharge in bankruptcy:
- The tax filing due date must be at least three years, including extensions, prior to the bankruptcy filing.
- The tax return, even if filed late, must have been on file for at least two years before the bankruptcy filing.
- The IRS tax assessment, which could have come from an IRS audit, a reported balance due or a proposed assessment that has finalized, must have been completed more than 240 days before the bankruptcy filing. Note that certain events can "toll," or suspend, the 240-day time period.
- The tax return cannot have been deemed fraudulent.
- The taxpayer cannot willfully have tried to evade taxes.
We are extremely detailed in our preparation regarding your bankruptcy, provide a comprehensive approach in seeking a successful bankruptcy, and guide you through this difficult process with the dignity and respect you deserve.