Did you know when you file for bankruptcy under Chapter 7 you can discharge a certain amount of the taxes you owe IRS? However, there are certain conditions that have to be met before you do this. You can easily meet these conditions. Since this deals with the law you should consult a bankruptcy attorney about this matter.
The conditions are
You have filed yours tax returns for the year or those years in which you owe the government back taxes.
For at least 240 days before you have filed your bankruptcy case, you should not be assessed for tax liability by the IRS.
These back taxes must be at least three years old when you file for bankruptcy.
These back taxes must be for a tax return you have filed at least two years before you have filed for bankruptcy.
The final condition should be that you have not willfully evaded paying your income tax.
So, how do you use this information to your advantage? Even when you cant pay your income taxes, you should have filed your tax returns. Second thing you should be careful about is the time period that surrounds your back taxes. The reason for this is that if you are not careful the IRS will get you on technical grounds. Last of all you should be aware of your tax situation. That is you should have accurate information about it. You can get a free tax transcript from the IRS if you ask them.
Thats not all. Sometime the tax lien placed on you by the IRS or the state taxing authority can be cleanly erased from the books if you efile for bankruptcy under Chapter 7. This means that the IRS will not be able to either plunder your bank account or garnish your wages so that your back taxes are paid off. However, if you wish to sell your property with a clear title, then you will have to pay the IRS first.
As mentioned earlier consulting a bankruptcy lawyer before you decide to file for bankruptcy under Chapter 7 would be a wise thing to do. The reason for this is that the best solution to the problem may not be filing for bankruptcy. You may have other options through which you can pay back your taxes. These options include installment agreement. To learn more about these options and to find what will be in your best interest, you should consult a tax professional.
If you yet to file your online taxes you can get them done by rapid refund.
The conditions are
You have filed yours tax returns for the year or those years in which you owe the government back taxes.
For at least 240 days before you have filed your bankruptcy case, you should not be assessed for tax liability by the IRS.
These back taxes must be at least three years old when you file for bankruptcy.
These back taxes must be for a tax return you have filed at least two years before you have filed for bankruptcy.
The final condition should be that you have not willfully evaded paying your income tax.
So, how do you use this information to your advantage? Even when you cant pay your income taxes, you should have filed your tax returns. Second thing you should be careful about is the time period that surrounds your back taxes. The reason for this is that if you are not careful the IRS will get you on technical grounds. Last of all you should be aware of your tax situation. That is you should have accurate information about it. You can get a free tax transcript from the IRS if you ask them.
Thats not all. Sometime the tax lien placed on you by the IRS or the state taxing authority can be cleanly erased from the books if you efile for bankruptcy under Chapter 7. This means that the IRS will not be able to either plunder your bank account or garnish your wages so that your back taxes are paid off. However, if you wish to sell your property with a clear title, then you will have to pay the IRS first.
As mentioned earlier consulting a bankruptcy lawyer before you decide to file for bankruptcy under Chapter 7 would be a wise thing to do. The reason for this is that the best solution to the problem may not be filing for bankruptcy. You may have other options through which you can pay back your taxes. These options include installment agreement. To learn more about these options and to find what will be in your best interest, you should consult a tax professional.
If you yet to file your online taxes you can get them done by rapid refund.
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