Is a complaint to determine dischargeability needed to discharge taxes?

[joe1]

I know that under certain conditions (240 day rule, 3 year rule, etc.), income taxes are dischargeable in bankruptcy. I also know they are listed in Schedule E.

My question is whether or not you need to file a Complaint to Determine Dischargeability (aka adversary proceeding?) to have the income taxes discharged, provided they meet the specific criteria. I have heard mixed things about this issue. Thanks a lot!

[HHM]

Nope, not required. The income tax discharge rules are self-executing.

Now, if there is any doubt, or if you are close on the dates, an AP is advisable.

Also, if you believe the taxes are dischargeable, you put them on Schedule F, not schedule E.

[joe1]

So as long as they are listed and comply with the requisite criteria, they will be discharged? That is good to know. Additionally, I was reading Stephen Elias, "How to file for Chapter 7 Bankruptcy," and he wrote: "Taxes and certain other debts owed to governmental units. Check this box if you owe unsecured back taxes
or if you owe any other debts to the government." He is referring to Schedule E in the previous sentence (p.157, 14th ed.). E is Unsecured Priority Claims and F is Unsecured Nonpriority claims. I guess then that old income taxes would be unsecured, nonpriority claims then....

[joe1]

One more question HHM - does the filer need to submit any paperwork showing that the income tax debt complies with the various provisions in the code (i.e. submit documents showing the income tax debts comply with the 240 day rule, the 3 year rule, etc.) or is just listing it enough IF it complies with the criteria? Thanks again, a lot!

[HHM]

So as long as they are listed and comply with the requisite criteria, they will be discharged? That is good to know. Additionally, I was reading Stephen Elias, "How to file for Chapter 7 Bankruptcy," and he wrote: "Taxes and certain other debts owed to governmental units. Check this box if you owe unsecured back taxes
or if you owe any other debts to the government." He is referring to Schedule E in the previous sentence (p.157, 14th ed.). E is Unsecured Priority Claims and F is Unsecured Nonpriority claims. I guess then that old income taxes would be unsecured, nonpriority claims then....

Correct, old income taxes that qualify for discharge are unsecured, non-priority claims (assuming no liens have been filed).

Generally, no supporting documents are required. If you run into any problems after the BK, you would contact the IRS Insolvency Department to clear it up.

[biotechsolution]

Remember if you were involved in any OIC's then that will toll certain time periods, the 240+30 rule. You can't file your bankruptcy until 270 days have passed.