Taxes - Can they be discharged?

[Adchick]

ok, somebody here must know this! I have read a few different things online about when and how taxes are able to be discharged and I am confused. the last thing I read said if the tax return for which the taxes are owed was filed 3 years before the bankruptcy filing - they can be discharged.

is this true? if not, what is?

(I owe about $2500 to the IRS from 2004. I've been on an installment plan since 2005.)

[HHM]

When did you file the Tax Return for the amount you currently owe?

Is the amount you owe is from "tax year" 2004, meaning, you would have filed the tax return sometime in early 2005?

[Adchick]

hmmm...I may have to double check but I'm pretty sure it's from "tax year" 2003 and filed in 2004. I made a clerical error which wasn't brought to my attention by the IRS until August or so. I moved and wasn't getting all my mail in a timely fashion and when I finally got the notice I played ostrich for a while . I didn't get myself on the installment plan until early 2005.

[lrprn]

Adchick, according to http://taxes.about.com/od/bankruptcy...ruptcy_tax.htm , here's the guidelines about when federal taxes can be discharged in bankruptcy -

"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."

Hope this helps.

[Adchick]

Thanks, lrprn! That does help.

[brokeinmichigan]

My DH owed approx 10K in back taxes when we filed in April. It was from '98, and it all was included in the BK. He had been paying on it for 8 or 9 years, and had paid well over the original amount. So it was nice to see that go away! So, short-story-long...yes, taxes can be included if they meet all of the criteria.

Good luck!