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Q: Can I Discharge Federal Income Tax Debt in a Chapter 7 Bankruptcy?

Writer's picture: Heather A. Harwell, Esq.Heather A. Harwell, Esq.

The answer to this question depends upon several factors. Generally, recent federal income tax debt and federal income tax debt that has been converted to a lien on your property is NOT DISCHARGEABLE in a Chapter 7 Bankruptcy. However, your federal income tax debt may be DISCHARGEABLE if the following applies:


1. The taxes must be federal or state income taxes; AND


2. The taxes are at least 3 years overdue. This date is calculated from the date the taxes were actually due but if an extension was granted, this may affect when the 3 year period begins (11 U.S. Code §507(a)(8)(A)(i)); AND


3. The tax return generating the federal income tax debt must be filed at least 2 years before the day you file for Chapter 7 Bankruptcy (11 U.S. Code §523(a)(1)(b)(ii).); AND


4. The amount of federal income tax due must be assessed at least 240 days before the day you file for Chapter 7 Bankruptcy, which, in most cases, is the date the tax return was filed. However, corrections, disputes and audits may affect when the 240 day period is calculated (11 U.S. Code § 507 (a)(8)(A)); AND


5. The tax debt must not have been converted to a tax lien on your property (United States v. Bess, 357 U.S. 51 (1958); United States v. Stern, 357 U.S.39 (1958). ); AND


6. The tax returns generating the debt must not be fraudulent and you cannot be guilty of intentional tax evasion. 11 U.S. Code § (a)(1)(C); 11 U.S. Code § (a)(2).


NOTE: The information provided on this website is provided as a general reference and not intended to be relied upon as tax advice or legal advice. Do not make any legal or tax decisions based upon the information provided within this website. To determine how the laws apply to your particular financial and/or legal situation, you are encouraged to consult with an experienced attorney, accountant and/or tax professional.

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The Law Office of Heather A. Harwell, PLLC is a Federally designated debt relief agency which defends consumers and files suits on behalf of consumers pursuant to various Florida and Federal laws, including bankruptcy under Title 11.  The Law Office of Heather A. Harwell, PLLC handles Consumer Bankruptcy, | Chapter 7 Bankruptcy, Debt Defense Against Credit Card Lawsuits by Original Creditors  including American Express, Discover, T.D. Bank, Synchrony Bank, Capital One Bank, Credit One Bank and others;, Debt Defense Against Credit Card Lawsuits by Debt Buyers including Midland Funding, LLC, Portfolio Recovery Associates, LLC, LVNV Funding, LLC, and others; Debt Defense Regarding Automobile Repossession Deficiencies; Debt Defense regarding Foreclosure Sale Deficiencies; Garnishment Defense, Credit Reporting Issues, Lawsuits against Creditors & Debt Collectors violating Fair Debt Collection Law violations, and Appeals regarding Debt, Credit and Violations issues in the U.S.M.D. of Florida, Hillsborough County, Hernando County, Pasco County, Wesley Chapel, Zephyrhills, Spring Hill, San Antonio, Trinity, North Tampa, New Port Richey,  Lutz, Land O Lakes and surrounding areas.  EVERY CASE IS DIFFERENT.  The information provided in this website is meant for general informational purposes only and should NOT be construed as formal or comprehensive legal advice.  Visiting this website and/or referring to its content does not create an attorney-client relationship.  The attorney provides a no-contact consultation via telephone or video regarding Chapter 7 Bankruptcy, Debt Defense,, Debt Collector Violations, Debt Settlement, Debt Negotiation and Garnishment / Attachment Issues.

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Principal Office and Mailing Address:  27524  Cashford Circle, Ste. 102, Wesley Chapel, FL  33544

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