IRS repayment program for past taxes-married

[tg16]

If a husband and wife file income taxes jointly, and have been set up with a monthly payment plan through the IRS for past due taxes, is any of the money still owed to the IRS is included in a Chapter 7 filing, IF only one spouse files for bankruptcy?

[justbroke]

The IRS is a creditor, so they are always "included" in a bankruptcy filing. Whether or not the tax is dischargeable is a question based on when the taxes were due under the 3/2/240 rule. You may still need to payback the past due taxes (and penalties) if they don't fit the discharge rule. The IRS will end your payment program upon the filing of the bankruptcy. You will need to enter into a new payment plan after the bankruptcy is closed.

[despritfreya]

I am assuming you are inquiring about the following:

My wife and I owe taxes. The taxes meet the test to be discharged in bankruptcy. If I file bk but my wife does not, will the discharge protect her from collection of the taxes?

If these taxes meet the test to be discharged, unless both of you file bk, I tend to doubt the non-filing spouse (co-debtor) will reap the benefit of the discharge since you do not live in a community property state. Please discuss with a local bk attny.

Des.

[justbroke]

I can attest personally that the non-filing spouse will not reap any benefit of a discharge (or of any dischargeable amounts). The IRS will go after the non-debtor spouse post close of the case. It may take a year, but they will come for that "joint" debtor (except in community property States).