Bankruptcy Relief May Eliminate Your Tax Debt
Your eligibility to discharge tax debts in bankruptcy is complicated and subject to many disqualifying exceptions. It requires a detailed analysis by a skilled lawyer to determine whether you qualify. At Kresch Tax Resolution Services we will evaluate your circumstances and help you achieve either a discharge of past-due taxes or avoid the mistake of filing for bankruptcy unnecessarily. Kresch Tax Resolution Services can handle your bankruptcy petition from start to finish or advise you of other ways to handle your tax debt besides bankruptcy.
Some general requirements for bankruptcy relief are listed below for individual, employment, excise and property taxes.
General requirements for eliminating Individual Taxes through bankruptcy:
- No tax fraud or tax evasion,
- Only income taxes are eligible,
- Only an individual is eligible,
- Tax debts are at least three years old,
- Tax returns must have been filed at least two years prior to the bankruptcy,
- More than eight months (240 days) have elapsed between the time you file bankruptcy and the date the IRS assessed the tax. The assessment date is typically on or near the date the tax return was filed (assuming the IRS or other taxing agency agree on the amount of taxes owed),
- No prior bankruptcies.
General requirements for eliminating Employment Taxes through bankruptcy:
- Earned by debtor before filing for bankruptcy and
- Tax return due within the 3-year period prior to the date of filing for bankruptcy.
General requirements for eliminating Excise Taxes, Estate and Gift Taxes, and State Sales Taxes through bankruptcy:
- On a transaction occurring where a tax return was due within the 3 year period prior to the date of filing for bankruptcy or
- On a transaction where no tax return was required, that occurred within the 3 year period prior to the date of filing for bankruptcy.
General requirements for eliminating Property Taxes through bankruptcy:
- Incurred before bankruptcy and
- Last payable, without receiving a penalty on the payment, within the 1 year period prior to filing for Bankruptcy.