Lucas Ruffing Law

Bankruptcy Blog

Overview: Eliminating Tax Debt in Bankruptcy

As almost all my blogs start, CONTRARY TO WHAT YOU MAY HAVE HEARD, taxes can be eliminated in bankruptcy!… if the taxes meet specific criteria:

  1. The tax return must have been due at least three years before the bankruptcy filing (including all eligible extensions, i.e. October 15).

  2. You must have actually filed the return at least two years prior to the bankruptcy filing.

  3. The IRS must have assessed the tax at least 240 days before filing.

Additionally, the debt must be for personal income taxes, not payroll or sales or fraud-related taxes. There must be no fraud or intentional tax evasion involved. Even if the tax debt is discharged, any existing tax liens on property may still survive the bankruptcy.

Because the rules are complex and timing-sensitive, it's best to consult a bankruptcy attorney. My consultations are FREE, over-the-phone, and take about 30-60 minutes. Call/text/email to schedule a consultation!

Best,
Lucas Ruffing
Attorney
740-815-1114 (call/text)
LucasRuffingLaw@gmail.com (email)

Lucas Ruffing