Some Tax Debts Can Be Discharged by Filing Bankruptcy

Tax debt is a serious financial problem. The IRS can assess penalties and interest and attach liens to your property if you don't pay. For many people, however, bankruptcy provides a solution.

Certain taxes can be discharged when you file Chapter 7 bankruptcy or Chapter 13 bankruptcy. Taxes that can't be discharged can be placed in a Chapter 13 bankruptcy payment plan and repaid without interest or penalties over a three- to five-year period.

At the law offices of William H. Oliver, Jr. & Associates, our lawyers offer a free initial consultation to discuss your options if you have tax debt.

You can reduce tax debt. Call 732-988-1500 for a free bankruptcy consultation in Monmouth or Ocean counties.

What Taxes Can Be Discharged?

State and federal income taxes can be discharged if:

  • The taxes are more than 3 years old.
  • The tax return was filed more than two years ago.
  • The taxes were assessed not less than 210 days ago.
  • The tax debt was not incurred by fraud or willful failure to file.

Our lawyers can evaluate your tax debt during your free initial consultation and determine if it is dischargeable.

What If Tax Debt Is Not Dischargeable?

Some taxes are not dischargeable. For example, sales taxes and trust fund taxes for Social Security and Medicare are not dischargeable. However, those tax debts can be placed in a Chapter 13 bankruptcy repayment plan.

For More Information About Discharging Tax Debts in Bankruptcy

With offices in Toms River and Neptune City, New Jersey, our lawyers are ready to answer your tax debt questions and help you find solutions. Evening and Saturday appointments are available. Call local 732-988-1500 or fill out our contact form.