The following conditions must be met to discharge your IRS taxes in an Arizona bankruptcy:
- Must have filed an original return. IRS substitute for returns do not qualify.
- Must be 3 years past the due date for filing the return, including extensions.
- Return must have been assessed at least two years and 240 days after a new assessment from an audit.
- There must be no fraud in the filing of the return.
- Payroll taxes and sales taxes cannot be discharged in bankruptcy.
- If you filed a previous bankruptcy, the 3 year and 240 day rules are extended during the time you were in bankruptcy plus 90 days.
- An Offer in Compromise delays the 240 day rule for the time the Offer was pending plus 30 days
- A Collection Due Process Hearing will delay the 3 year and 240 day period for the amount of time you were involved in the CDP process.
If you have questions about whether you qualify for discharge in a bankruptcy or need to file returns so that you can pursue filing a bankruptcy to discharge taxes at a later time, contact Scott Allen E.A. for a free consultation at 48-926-9300.