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Tax Aspects of Bankruptcy

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List of important facts to consider before filing bankruptcy to discharge taxes:

  1. Filing a bankruptcy will negatively affect your credit.
  2. Don’t just get rid of credit card debt, judgments and medical bills.  Wait until you can also discharge your income taxes at the same time.  There is a waiting period that must be met before income taxes can be discharged in bankruptcy.
  3. Tax liens are not dischargeable in a bankruptcy.
  4. Is there another settlement option available that is better for your situation such as an IRS currently not collectible status?
  5. Will your tax debt soon be eliminated by the IRS statute of limitations?
  6. Do you qualify for an IRS Offer in Compromise?

Many clients, who think that bankruptcy is their only option, find out that there are other choices that provide them IRS tax relief without all of the negatives associated with filing a bankruptcy.  Refer here to see a list of all the options available to you.