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

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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 income taxes due to forgiven debt in bankruptcy. I stay as far away from the Tax Code as possible, though the answer may lie in there.Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person.
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If a tax debt is owed to the IRS can filing bankruptcy settle this debt and allow you to start over?

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 yea

Can income tax debt be discharged in a bankruptcy?

Answer . Yes. Suprisingly it is a fairly low (I believe 7th position) claim against the assets. . Answer . Generally speaking, income tax debt can be discharged if t

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 Compromise,

We are in bankruptcy. Do we have to pay our income taxes that we owe from 2008 or can they be entered into the bankruptcy debt?

Unfortunately, you will have to pay your income taxes from 2008, even after your bankruptcy is finalized. Federal law prohibits income tax debt from being discharged, so you w

Is there a minimum amount of debt to file for bankruptcy?

Debt is only a small part of the equation.. You could have 1,000,000 of debt, but if you have a lot of assets too (maybe 100sK less than the debt)...BK may be unreasonable or

Can you file bankruptcy owing taxes?

No you cant as far as know because you are still owing the IRSmoney witch could cause a conflict between you and the BankingAgency, Other words know what's up before you do it

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: Thi

What if the debt is incurred after the bankruptcy filing but before the bankruptcy discharge?

When an individual files for bankruptcy, he/she must list down allthe creditors and debts that they have. If the bankruptcy hasalready been filed and the individual has incurr

Can you file income tax on your bankruptcy?

State Income Tax Claims, Federal Tax Claims, and Real Estate Taxes must be included in a bankruptcy filing. Income tax claims that are less than three years old will usual

Can you file bankruptcy when you debt is federal and state income taxes?

You can file bankruptcy at any time you like, but I will tell you that bankruptcy court does not have the authority to drop the taxes. The IRS or State may allow a payment pl