Most taxes are not dischargeable, but some income taxes are dischargeable. Basically, the IRS gets three years to try to collect from debtors, before debtors may discharge income taxes. If a debtor files a timely tax return, three years after the return(s) were first due, the taxes become dischargeable.
The best thing we can do to determine if your taxes are dischargeable is order a transcript of your tax history from the IRS. Come in, sign a tax transcript request, and we can see which taxes are dischargeable. IRS transcripts can be ordered online, and have the detail needed to make a determination if taxes are dischargeable.
Keep in mind, if the taxpayer has nonexempt assets, the trustee will take them, sell them, and use the funds raised to pay the IRS. So, even if taxes are dischargeable, if there is a lot of equity above the homestead, in a taxpayer's home, or other nonexempt assets, the taxpayer will lose the home, or other nonexempt assets, and only discharge the taxes that exceed the equity in the home/assets.
Income taxes, if the return was timely filed, are dischargeable three years after the taxes were first due.
After the amendments to the BK code in 2005, most late filed taxes are no longer dischargeable.
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