Can I Get Rid of My Tax Debt by Filing Bankruptcy? by Attorney Robert Schaller

Many, many types of debts are discharged when an individual files Chapter 7 bankruptcy. The most common type of debts discharged in bankruptcy are credit card debts, medical debts, lawsuit debts, and department store debts. These debts are discharged and those creditors are not allowed to harass the person filing bankruptcy. The bankruptcy discharge prohibits creditors hold discharged debts from filing law suits, making harassing collection calls, garnishing wages, or levying liens.

IRS back-tax debt is treated differently from credit cards and medical bills, according to attorney Robert Schaller. It is often difficult for an individual debtor to determine whether his/her IRS back-tax debt was discharged when the general discharge order was entered.  

The dischargeability of IRS back-taxes depends on six or more conditions. Factors to consider include:

  • Does the IRS debt relate to “income” tax debt or some other debt?
  • Is the debt three years old or older?
  • Was a valid tax return filed for the debt two years before filing for bankruptcy?
  • Did the IRS must assess the debt at least 240 days before the bankruptcy case was filed?
  • Were the tax returns filed honestly and without any without tax evasion or fraud?
  • Has the IRS filed a tax lien?

For more information on IRS tax relief from back-taxes, talk to lawyer Robert Schaller by visiting his website at https://schallerlawfirm.com/.  Bankruptcy lawyers can learn more about getting rid of IRS back-taxes by taking online courses at National Bankruptcy Academy, https://nationalbankruptcyacademy.com/, or at Schaller Bankruptcy Master Class, https://schaller-bankruptcy-masterclass.com/.