If you are considering filing bankruptcy in order to solve your tax debt problems you should be aware of some of the issues involved. Many people believe that you cannot discharge tax debt via bankruptcy. But this is not the case. Tax debt is dischargeable if it meets the strict requirements involved in qualifying for a discharge.

Some of the qualifications involve timelines, such as when you filed the income tax return you are attempting to get discharged. The year in which you filed your return must have been filed a minimum of two years prior to filing bankruptcy. Any return filed within two years of your bankruptcy case will not qualify for discharge. Whereas the taxes you are trying to discharge must be at least three years old. In other words, your overdue taxes must be owed from a minimum of three years prior on a tax return filed no later than two years ago.

There are other criteria by which discharge of tax debt is based. The IRS must assess your tax debt two hundred and forty days before you file for bankruptcy. Income taxes are the only taxes that can be discharged via bankruptcy. For example, you cannot discharge unpaid payroll debt through bankruptcy. If you have been convicted of income tax fraud or tax evasion, your tax debt is not dischargeable by filing bankruptcy. Keep in mind that in bankruptcy court, you may have to supply your most recent income tax return, along with the returns from the previous three years.

If you live in Denver, Aurora, Arvada, Brighton, Broomfield, Commerce City, Englewood, Highlands Ranch, Lakewood, Lafayette, Littleton, Northglenn, Westminster, Wheat Ridge, or Golden, Colorado, please feel free to contact me with any questions.

Kevin D. Heupel, Colorado Bankruptcy lawyer, 303-955-7570, COBankruptcyHelpEmail, free-consultation form.