Filing for bankruptcy may be a good way to deal with your tax debts. However, often times it is not. Yet, there may be other options without filing for bankruptcy.

Generally, you can discharge your income tax debts for any year where your tax return for that year was due more than 3 years ago, where the return was actually filed more than 2 years ago, where your tax obligation was assessed more than 240 days ago, and where you did not intentionally fail to file your return or pay your taxes.

The time periods above can sometimes be suspended.  For example, if you had an offer in compromise pending with the IRS, the above periods will be met only after you subtract out the time that the offer in compromise was pending, plus 30 days.

Some kinds of taxes are dischargeable in a bankruptcy case and some are not.

For the most part, income taxes are dischargeable, subject to the above rules. By contrast, excise, sales and withholding taxes are not dischargeable.

Bankruptcy is a feasible way to eliminate tax debt. However, when bankruptcy will not work, there are often numerous other ways to deal with your tax debts.

If you are interested is discussing your options, please call me at (570) 823-9400 or write to me at