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Can you file bankruptcy to pardon debt for owing back income taxes?
Wiki User
∙ 12y ago
You can discharge income tax debt in bankruptcy only under certain circumstances. The rules are discussed in IRS Publication # 908. I have added a link to the one from 2009, but check with your tax adviser for any updates.
Wiki User
∙ 12y ago
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Which bankruptcy removes federal taxes?
Federal income tax can sometimes be discharged in a bankruptcy, but there are several rules that apply. Only one example is, federal taxes must be at least three years in arrears before qualifying for bankruptcy discharge.
Can you put 4 year old income taxes in a bankruptcy?
Federal income taxes due in an amount certain 3 years or more before the bankruptcy filing date can be discharged along with other dischargeable debts. You cannot just file to discharge the taxes, unless you have no other unsecured debt.
Can you go bankrupt in IRS?
The IRS does not like its agents to file for bankruptcy, so I understand. If you're asking if you can discharge taxes owed to the IRS, the answer is, maybe. If the tax is income or certain property taxes, and if the income tax owed was determined more than 3 years prior to filing - and if you were not concealing income - those taxes can be discharged. You should really consult a bankruptcy lawyer who knows about taxes.
How long should a person wait after a chapter 13 bankruptcy is dismissed to file income taxes for that year to guarantee to receive the refund?
You have to file your income taxes yearly regardless of whether you have filed for bankruptcy or not. Yes, IRS may garnish your refunds to pay toward your debts. If your bankruptcy is over however, you don't have to worry about that.
Are bankruptcy payments tax deductible?
Absolutely not. Bankruptcy payments are repayments for debts that you incurred in the past and did not pay. There is no circumstances where these could be deductible on your income taxes.
Can you file for bankruptcy even if you owe back taxes?
Yes, you can, and you may be able to discharge the taxes owed, if they are income taxes for returns filed more than three years prior to filing, unless there are more recent adjustments to the taxes owed.You can also file a Chapter 13 to arrange a payment plan for the taxes, though the IRS has become more amenable to reasonable payment plans without a bankruptcy filing.Consult an experienced bankruptcy lawyer in your area.
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 will still owe, but you may find that they stop attempting collection until after your bankruptcy case is complete. You may want to ask your bankruptcy lawyer if he has tax experience so that he can act as your tax lawyer in dealing with the IRS to settle the debts you owe them as well.
You just filed for bankruptcy and also got your 2008 refund will that be added to income in2009?
I filed my Federal taxes for 2008 and just received a refund and I am in the process of filing bankruptcy this month will that refund be added as income to the bottom line?
Will IRS still take your income taxes after filing chapter 13 bankruptcy?
If you still owe federal income taxes, they will. But if they don't take it, the chapter 13 trustee gets the tax refund. You should have listed any income taxes that were dischargeable (due more that 3 years prior to the filing date).
Can you file bankruptcy while still owing back taxes?
Yes, as a general rule. Taxes of all kinds are not discharged by the bankruptcy process. That means, when it's all over with bankruptcy, you still owe taxes to the federal gorvernment, and any other government. In short, fiiling a petition in bankruptcy and a subsequent discharge will not get you out of paying taxes to the government. It's really easy to filing a petition in bankruptcy; it's very expensive not to do it right; the Bankruptcy Court is just not the same as your Magistrate's court, or the small-claim's court. It's very expensive to do it wrong and you cant do it but every so often (time limits: you just have to see the code. If you have a bankruptcy sitution you really need to see a lawyer who works with bankruptcy.
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 plan instead of allowing them to begin confiscating property. You will still have to pay the taxes due and it may be to your benefit to work out a payment plan directly with tax department and not have to pay the legal and court fees involved with the bankruptcy.
Can mother of 2 who did not work all year file taxes?
No need-since there is no income to report, there is no possibility of either owing money or getting any refund
