Reboot Your Life: Tampa Student Loan and Bankruptcy Attorney Blog
First and foremost, if you pay your taxes using a credit card, most credit card companies have coded this into their system so that following a bankruptcy, you would likely receive a bill for the non-dischargeable IRS debt. So don’t pay with a credit card.
When can taxes be discharged in a bankruptcy?
There are a few rules that apply to allow taxes to be discharged.
- The 3 year Rule: The tax return must have been due at least 3 years before you file bankruptcy. Extensions count.
- The 2 year Rule: You must have actually filed the tax return at least 2 years before your bankruptcy filing date.
- The 240 day Rule: The IRS must have assessed the tax at least 240 days before you file.
When you think of it, this makes sense. The IRS has to have had a chance to collect the tax before it can be discharged. The key is waiting to file until AFTER these deadlines expire. If you miss any of these, even by a single day, the tax debt will not be discharged. It’s not pro-rated.
If you plan ahead, and take steps to ensure these deadlines are met, you can:
- Legally eliminate IRS tax debt
- Stop wage garnishment
- Obtain federal tax lien releases
- Your credit can begin to recover
- Protect your home, car and retirement
- Keep 100% of your paycheck
- Obtain a fresh start – free of tax debt!
