Taxes and Bankruptcy -

Can I Use Bankruptcy to Discharge Tax Debts?

While some tax debts can be discharged through bankruptcy liquidation, there are exceptions. Section 523 of the Bankruptcy Code identifies three debts you must repay: 1. Unfiled tax returns. If you did not file a tax return for the year the debt is assessed, you cannot obtain a discharge. If you filed late tax returns,…

What Type of Bankruptcy Is Best For Tax Debts?

Chapter 13 is the go-to bankruptcy for taxpayers who owe IRS debts that cannot be discharged in chapter 7. But before you file that petition, you should know: All priority debts must be paid in full. They cannot be reduced or discharged in bankruptcy. Not sure if your debt gets priority status? Read our article Tax…