Income Taxes Dischargeable?

[endro]

Are income taxes dischargeable in BK? I've heard both no and yes.

Thank you.

[HHM]

Are income taxes dischargeable in BK? I've heard both no and yes.

Thank you.

Unfortunately, yes and no is the right answer. You will want to look at Section 523(a)(1) of the BK Code

[endro]

Thanks HHM

Where can I find that code?

[no_it_all]

State income taxes cannot be discharged, but Federal income taxes can be. I filed Pro Se and had 12K in Fed taxes discharged. Just go to the IRS website and root around, you will find all the info you need. Generally, they have to be at least three years old prior to when you file...good luck!

[lrprn]

"Five Rules to Discharge Tax Debts
If the income tax debt meets all five of these rules, then the tax debt is dischargeable in Chapter 7 and Chapter 13 bankruptcy petitions.
* The due date for filing a tax return is at least three years ago.
* The tax return was filed at least two years ago.
* The tax assessment is at least 240 days old.
* The tax return was not fraudulent.
* The taxpayer is not guilty of tax evasion."

For the details about each of these rules, see http://taxes.about.com/od/bankruptcy...ruptcy_tax.htm

[amino99]

IRS taxes are only dischargeable if they are more than 3 years old. I filed in April 2006, owe the IRS a ton, and am now making huge payments to them as the debt was not dischargeable. They looked at my total debt and left me no choice but BK. They said everything I was paying to the CC would now go to the IRS...and they weren't kidding. Needless to say, they are now being paid every month - on time.