Thinking About Filing Bankruptcy? Make Sure Your Taxes are Filed.

Unfiled taxes can cause various problems with your bankruptcy case.  First, they can result in the dismissal of your case should the trustee so decide.  Additionally, although there have been changes in the bankruptcy law protecting taxes, some taxes can still be discharged in your bankruptcy if they meet a particular standard.  First, they must be income taxes which came due three or more years ago.  Second, the returns must have been filed at least two years prior to the filing of your bankruptcy.  Finally, the most recent tax assessment must be at least 240 days old.  If these standards can be met, and you did not engage in fraud or tax evasion, then the tax can be discharged; however, unfiled taxes can never be discharged.  Therefore, it is in your best interest to make sure that all taxes are filed prior to the filing of your case to avoid the potential dismissal of your case and to make sure that all debts that can be discharged in your case are discharged.  For more information on the effect of bankruptcy on tax debts, visit the Law Office of Suzanne Szymoniak.


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