Taxes and Bankruptcy

Can My Past Due Taxes Be Discharged In A Bankruptcy?

If you owe past due taxes, filing a bankruptcy may eliminate your obligation on these taxes.  However, there are several requirements that must be met before you can affirmatively say your obligation towards these past due taxes would be discharged.

Income taxes may be discharged in a Chapter 7 bankruptcy when three obligations have been met.

  • First, the tax year in question is more than three years old from the date of filing
  • Second, the tax return has been filed more than two years prior to the date of filing your bankruptcy
  • Finally, there has been no recent assessment relative to the tax year in question

Taxes that are non-dischargeable are taxes less then three years old from the date of filing, sales tax, business tax and/or payroll tax.

There are various other requirements that may be applicable towards a debtor’s tax situation that requires a careful understanding of the law.  If for some reason a debtor’s tax scenario would not be dischargeable under a Chapter 7 bankruptcy, a Chapter 13 bankruptcy may be a viable option, allowing past-due taxes to be incorporated into your payment plan.


The Swenson Law Group will help you properly handle your tax issues.  Attorneys Mart and Evan Swenson has over 35 years of experience, and experience matters when making certain all your options have been reviewed with you.  It is the Swenson Law Group’s goal to get you the best outcome possible.

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Additional Resources:

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