How Filing Bankruptcy Can Help With Your Tax Debt

When you consider filing bankruptcy, many questions will likely arise. You might wonder what the process will be, which of your debts can be discharged and whether you'll even qualify. The experienced attorneys at DiTocco Law Group, PLLC, can provide you with the information necessary to make an informed decision.

Contrary to what you may have heard, depending on the specifics of your financial situation, you might be in a position to discharge your income tax debt. Though bankruptcy is extremely complex, our lawyers can work with you to find the best possible solution for your debt.

Which Taxes Can You Discharge In Bankruptcy?

From our Fort Lauderdale office and throughout Broward County, our legal team can help you understand the eligibility requirements for discharging IRS tax debt. To do so, the following requirements must be met:

  • Tax debts must be income-related.
  • The tax debt in question must have been due more than three years prior to the date of filing bankruptcy.
  • An actual good faith tax return must have been filed at least two years before your bankruptcy.
    • What constitutes a good faith tax return has been the discussion of much debate throughout the court system.
  • There must have been no new assessments made in the 240 days preceding the filing date.
  • No fraudulent activity may be involved.

While you may be able to discharge some tax debt through filing bankruptcy, the IRS has the right to file a tax lien applicable to your personal property — even outside of Florida. However, in short, we will advocate for your best interests to get your financial situation back on track.

Get More Information About Getting Out Of Debt

For answers to your bankruptcy questions, schedule a free initial consultation with our experienced bankruptcy team. Call 954-566-9000 today or email us to discuss concerns about your tax-related debt.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.