How Does Bankruptcy Affect My Taxes?
Bankruptcy and Taxes
If you are an individual or business owner who is considering filing for bankruptcy, tax considerations may be important for you. While bankruptcy can help you discharge some taxes, it may not be possible to eliminate all tax debt. An experienced bankruptcy attorney at Juras Law Firm will work closely with you to evaluate your tax debts to determine their dischargeability and advise you on the strategy how to eliminate or reduce them. Contact us online today, or call our Phoenix, Arizona, law office at (480) 425-2009 to schedule a CONSULTATION.
Qualifying for Discharge of Tax Debt
In order to determine the dischargeability of your taxes, you should consult and experienced bankruptcy lawyer who will evaluate your tax debt. Generally, in order to be dischargeable, the income tax debt must meet the following criteria:
-The tax debt is more than three years old
-Tax debt was not assessed within 240 days before filing for bankruptcy
-The tax return was filed before bankruptcy filing
-Tax return was not filed late within two years of bankruptcy filing
-Tax is not assessable
-The taxpayer is not guilty of tax fraud and tax evasion
It is important to understand that tax debt from tax returns not filed cannot be discharged. As such, it is necessary to file all tax returns before filing for bankruptcy.
Foreclosures, Bankruptcy, and Taxes
In addition to explaining eligibility for tax debt elimination or reduction, the Juras Law Firm also helps clients understand the law concerning home foreclosure, and, the exemption of a personal residence from the debt forgiveness tax.
As a former law clerk to the U.S. Bankruptcy Judge for the District of Arizona, attorney Irena Juras has the experience to deal with bankruptcies involving a wide range of issues. Call the Juras Law Firm at (480) 425-2009, or e-mail us to arrange for a consultation to discuss your financial situation, possible bankruptcy, and tax issues.