Enfield, Connecticut Bankruptcy Attorney Focuses on Dischargeable Tax Debt

Connecticut Bankruptcy Law Firm: Your Resource for Skilled Bankruptcy Representation

You may be able to discharge old income tax debt in Chapter 7 bankruptcy, but most other types of taxes are not dischargeable. Income tax debt can be erased if it meets specific qualifications and limitations:

• The taxes must be income based – for federal or state income taxes or taxes on gross receipts
• The taxes were due at least three years before you filed for bankruptcy
• You filed a tax return at least two years ago – an IRS substitute for return will not satisfy this requirement
• The taxes were assessed at least 240 days before you filed for bankruptcy
• The tax return was not fraudulent or frivolous and you are not guilty of evading tax laws

Non-dischargeable Tax Debt

Most non-income related tax debt is non-dischargeable, including:

• Tax liens recorded before you filed for bankruptcy will remain attached to your property
• Property tax incurred before the bankruptcy filing that are payable within one year
• Trust fund taxes including FICA, Medicare, and other income taxes that an employer is required to withhold, as well as sales tax paid by a debtor's customer
• Certain employment and excise taxes
• Non-punitive penalties on non-dischargeable taxes, if the transaction occurred within three years of the bankruptcy filing
• Erroneous tax refunds or credits

Need advice regarding whether or not a certain tax debt is dischargeable? The attorneys at Susan M. Williams LLC have over 30 years of experience with bankruptcy and dischargeable debt. Contact our firm online, via e-mail, or call 860-265-4764 today – your initial consultation will be free.