Forgiving Back Taxes in Bankruptcy
Forgiving bankruptcy can help individuals who have experienced tax related debt. Being subject to taxes from the Internal Revenue Service can be a particularly harsh process. Many individuals who are struggling financially can be faced with bank account levies, property liens, and wage assignments. Many individuals should remember that unpaid income taxes are often dischargeable in bankruptcy, which can make the assistance of a skilled attorney particularly beneficial. Applicable Law Regarding Release from Taxes The government has distinguished several particular situations in which individuals are able to escape debt, which include the following situation: Taxes Due Over Three Years Ago Are Dischargeable. Law in the state of Oklahoma states that income taxes are dischargeable if the taxes were due at least year ago. For example, if an individual filed for bankruptcy in March of 2017, the individual would be able to discharge taxes prior to 2014. Taxes Must be Filed Over Two Years Ago. The taxes in question must also have been filed at least two years ago. Income Taxes Only. The only type of federal or state taxes that are dischargeable in Chapter 7 bankruptcy include income taxes. 240 Days After Tax Assessment. Additionally, in order to discharge personal [...]