It's a common misconception that tax debts survive every bankruptcy. While there are very specific rules regarding taxes and bankruptcy which Colorado Consumer Bankruptcy Association Ted Taggart summarizes below, some tax debt can be discharged.
- Were the taxes in question due over three years ago? Yes? Continue
- Were the taxes assessed at least 240 days ago or more? If yes, continue
- Are the taxes at least two years old? If yes, continue
- Were the taxes incurred through fraud? If NO continue
- Are the taxes 941 payroll withholdings? If NO continue
- Has a Notice of Federal Tax Lien been properly filed? If no, then there is a very good chance your taxes are dischargeable.
Taxing agencies don't intend for it to be easy to wipe out tax debt, and as such there are many intricacies to tax and bankruptcy law which a summary or blog post can't fully explain. For assistance in dealing with your tax debt, chapter 7 bankruptcy, chapter 11 bankruptcy, chapter 13 bankruptcy, mortgage debt, or or other debt matter, contact a member of the Colorado Bankruptcy Association today.
Ted Taggart focuses exclusively on bankruptcy law and has helped hundreds of people in Chapter 7 and 13s across the Colorado state in simple cases to highly complex business cases. He has been a regular guest panelist of the Federal Bankruptcy Court advising people considering bankruptcy, has spoken at Bankruptcy Seminars, has appeared on Channel Nine News and in the Denver Post and has served as a Channel Nine LawLine Volunteer Attorney.