how can I be sure old taxes are being discharged?

[suzy6]

I have taxes from 4 yrs ago from Canada that have been referred to the IRS for collection. Filed chap 7 Nov 28/08. Is there something that I need to do to ensure that they are discharged?

[justbroke]

Wow, this is a particularly interesting topic. I don't know if Canada will except your discharge. This is an area of Bankruptcy and Tax law that requires a professional!!!

[suzy6]

taxes are dischargable in Canadian law and these taxes are dischargable in U.S. law but how can I be sure that the IRS will have to comply? Thanks

[justbroke]

taxes are dischargable in Canadian law and these taxes are dischargable in U.S. law but how can I be sure that the IRS will have to comply? Thanks

But will Canada recognize a U.S. Bankruptcy Court.

Again, I'm not savvy in foreign taxation and dischargeability based on a finding in a foreign court. You really need good counsel.

Perhaps, someone else on here had a similar issue, but this is a very specific area of law. I would do no service by even researching it.

[magyar123]

But will Canada recognize a U.S. Bankruptcy Court.

Again, I'm not savvy in foreign taxation and dischargeability based on a finding in a foreign court. You really need good counsel.

Perhaps, someone else on here had a similar issue, but this is a very specific area of law. I would do no service by even researching it.

Could be - NAFTA - North American Free Trade Agreement - might have some kind of provisions.

[HHM]

I concur, this is a very interesting question and I am stumped as well.

I suppose in some sense, that the IRS's involvement in collecting the debt might be discharged (assuming this is an Income Tax). However, in the BK code, it references taxes owed a "governmental unit" and the BK code defines governmental unit as the USA. You might be able to split the difference.

I doubt the underlying tax that is owed the Canadian Govt. is discharged in a US BK court, but the IRS's ability to collect the tax might be in so far as the IRS is a US governmental unit, but I think that is a stretch.

Unless there is some specific treaty to recognize the BK discharge of a US BK court in Canada, I don't know the answer.