Are Tax Debts Dischargeable In Bankruptcy?

If you have a considerable amount of IRS tax debt, you may be at a loss for what to do. Unfortunately, most tax obligations cannot be erased in Chapter 7 bankruptcy, and even those that can are subject to conditions. Here are some guidelines for determining whether your tax debt is dischargeable in Dallas bankruptcy.
To get your tax debt discharged in bankruptcy is no walk in the park. The debt must meet all of the following criteria:
• Tax debt must be from income taxes only.
• There must be no evidence of fraud in your tax history.
• Tax debt must be over three years old.
• A tax return must have been properly filed for the tax debt.
• The tax debt assessment must be at least 240 days old.
Your debt will be eligible for discharge if you meet these severe standards. Even if this obligation is properly discharged, any federal liens against your property as a result of the debt remain your responsibility. This means that even if you get a discharge, you’ll still have to pay off any liens on your house or other property. Tax debtors in Chapter 13 bankruptcy have even less flexibility, as they must pay their tax bill in full before their remaining debts may be erased.