What would you like to do?

If a tax debt is owed to the IRS can filing bankruptcy settle this debt and allow you to start over?

already exists.

Would you like to merge this question into it?

already exists as an alternate of this question.

Would you like to make it the primary and merge this question into it?

exists and is an alternate of .

Yes you can start over but this does have an extreme barring on your credit. You can include the years prior to three years from the tax year you owed the IRS. However any years owing after the fact, you will be responsible for.
Actually, you can under certain circumstances -- mainly if enough time has gone by (except in cases involving fraud):

As a result of Bankruptcy Code Sections 523 and 527, the following IRS tax is generally dischargeable:

Tax penalties for non-filing, tax penalties for late payment, tax penalties for late deposit, and tax penalties for late estimated payments; and Income tax, excise tax, and gift tax which is over three years old, has been filed at least two years prior to the bankruptcy petition, and/or has been assessed as an IRS tax audit deficiency for at least 240 days.

The above poster is right. I was recently discharged from a bankruptcy. When I filed for bankruptcy I owed money to the IRS. My attorney said as long as it had been THREE YEARS from the tax year that you owed the IRS it can be included in a bankruptcy.
+ 67 others found this useful
Thanks for the feedback!

How much debt must you have to file for bankruptcy?

There is no minimum debt you must have to file for bankruptcy. However, if your debt is too low in relation to your income or assets, you will either have to repay the debt in

Are parents responsible for child's IRS tax debt?

Responsibility of parent. Generally, a child is responsible for filing his or her own tax return and for paying any tax on the return. But if a dependent child who must file a

Can you file bankruptcy against a social security overpayment debt?

  Answer   It depends. Any overpayments or funds received by fraud from any state or federal agency cannot be discharged in a Chapter 7 bankruptcy, or in a Chapter 1

Do you pay taxes on debt discharged in bankruptcy?

Not always. There are some exceptions. The most common situations when cancellation of debt income is not taxable involve: Qualified principal residence indebtedness: This is

Do you have to file taxes if IRS owes you?

Yes. Do you think the IRS should just presume that everybody who doesn't file doesn't owe any taxes? 26USC6012 requires anyone having more than a certain amount of income

Will filing bankruptcy eliminate mortgage debt?

Bankruptcy can eliminate a mortgage debt however normally bankruptcy is not necessary to eliminate a 1st trust deed. The home simply can go back to the lender in a foreclosure

Does the government have to pay your debt if you file bankruptcy?

Not only does it not have to pay, it will not pay your debts. Debts are not extinguished in bankruptcy. The creditors are prohibited from collecting them, assuming you get a d

If a tax debt is owed to the IRS can filing bankruptcy settle this debt even with a lien?

Also keep in mind that liens are not released until the liability is paid in full regardless of the amount was dissolved by the bankruptcy.   If you file Offer In Compromis

What debts are included in filing bankruptcy?

doctor bills,electric.phone,cable,cell phone,water,gas,oil,credit cards,loans,car that are repo the money left on them, personal people you owe money to , IRS only stops the i

Can you claim bankruptcy on IRS debt?

Filing for bankruptcy is one of five ways to get out of tax debt,  but you should consider bankruptcy only if you meet the  requirements for discharging your taxes.

If you file bankruptcy do you owe income tax on the amount of debts that were discharged?

This is an intriguing question considering that the IRS does consider forgiven debt to be income normally. However, I have never seen the IRS pursue any of my clients for inc

Does irs get involved if you file bankruptcy on credit card debt?

The Internal Revenue Service typically gets involved with a bankruptcy estate when it gets to get in line in front of certain other creditors to foreclose a federal tax lien.

How far back can IRS collect debt owed to them by you?

There is no time limit imposed upon the IRS if there is any evidence of tax fraud on behalf of the taxpayer.  Normally they do not go back past 7 years but if fraud was invol