Like other forms of debt, back taxes can create a significant financial burden. Filing bankruptcy can be an effective way to obtain tax debt relief. Contact Daniels Associates for a free consultation to determine whether your Internal Revenue Service (IRS), Kentucky or Indiana state tax debts can be discharged by filing bankruptcy.
Whether you file for Chapter 7 or Chapter 13 bankruptcy, certain types of tax debts can be discharged (eliminated). In order to be dischargeable, the following must all be true:
- The tax debt is at least three years old (as determined by the date they were assessed);
- You filed tax returns for those taxes at least two years ago;
- The tax assessment took place 240 days ago or longer; and
- You were not involved in any tax evasion or tax fraud.
There are many types of tax debts, including federal income taxes, employment and sales taxes from a personal business, 941 or Social Security taxes, and property taxes. Tax law is complicated and there are many exceptions to the rules concerning tax debt relief, so you are better off discussing your particular case with a bankruptcy attorney.
Contact Daniels Associates today at 502.583.8300 or online for a free consultation.