Skip to main content
(678) 915-2634 Contact Us
Can you eliminate income tax debt in bankruptcy? Atlanta, GA

Personal Attention & Experience Since 1971 Family-Owned, Family Focused

Client Reviews

Can you eliminate income tax debt in bankruptcy?

lawyer in a lawyers library

Last week, we wrote about several forms of debt that are generally nondischargeable in bankruptcy, including student loans, secured debt and family court obligations. Today, we will discuss one debt form that also has very tight restrictions governing when it can and cannot be discharged: federal and state income tax debt.

Unlike the three previously mentioned debts, it is possible for income tax debt to be discharged in a personal bankruptcy. However, it is a complicated process with many strict regulations. Georgia residents who are contemplating bankruptcy for income tax debt may want to contact a bankruptcy attorney to guide them through the process.

In order to be dischargeable, the income tax return must have been due for at least three years. This means that a return filed this year would not be eligible for discharge in bankruptcy until April 18, 2015 – three years and one day after this year’s tax filing deadline. If you requested an extension, your tax debt would not be eligible until October 16, 2015.

You must continue to file tax returns during the two years leading up to that eligibility date. In addition, your taxes must have been assessed at least 240 days prior to filing bankruptcy. For standard tax returns, this is usually not an issue. But if you have been audited, you may end up waiting months or years for the assessment to take place. In addition, the state assessment generally does not take place until after the federal assessment is complete. If you want both debts to be discharged, you must wait at least 240 days after both assessments are complete.

Source: Bankrate.com, “Bankruptcy can eliminate tax bills – maybe,” Justin Harelik

Posted on behalf of Jamie L. Gingold, PC

195 14th Street NE #1604
Atlanta, GA 30309

Phone: (678) 915-2634

Email:

First Free
Appointment




    Disclaimer Privacy Policy

    I have read the Disclaimer and Privacy Policy

    Our Client Reviews

    Jamie L. Gingold, PC
    5.0 / 5.0

    Based on 28 reviews

    Jack L.

    They did an excellent job with my case. Jamie took the time to really listen and understand things. She delved into the details and was extremely knowledgeable and non judgmental. Very professional and they know what they are doing. Would definitely recommend!

    Karen B.

    Dear Mr Gingold, There are so many reasons to be thankful for all you have done and will do. Anyone who has ever had unfavorable experiences with an attorney or the legal system will feel the trepidation that I experienced once I realized that my situation seemed hopeless. It was by chance and happily good luck that I decided to put my future and sanity into your hands. I was mortified at having to deal with my debts by claiming bankruptcy. I remember in our first meeting how you assured me that I was not alone and should not feel ashamed. And, anyone in this position obviously does not have money to spare and you were clear about all the costs and allowing me to pay according to my own ability to do so. You advised me in all aspects of the law, but also, you were at each meeting incredibly supportive and complementary of my personal and professional plans. Anyone else in this situation should feel blessed to have access to your expertise and support.

    Lyla B.

    I thought the process of filing bankruptcy was going to be a difficult one. However, Gingold & Gingold treated me with respect and dignity from the moment I walked through their door. I had the pleasure of working with Jamie. She is very responsive, professional, and knowledgeable. She took the time and listened to my every concern and handled each and every one of them to my satisfaction. My experience with filing bankruptcy under Gingold & Gingold's representation exceeded my expectations in a major way. They gave me such a peace of mind. I am very pleased with my decision of going with Gingold & Gingold to represent me when I filed Chapter 13 bankruptcy.

    Julie T.

    Wow! I am finally out of debt and can say that I am debt free after completing my chapter 7 bankruptcy case with Gingold and Gingold. Mr dangled was very knowledgeable and direct with regard to my debt situation. there were no surprises and the case went as I was advised. The staff was also very helpful whenever I had a question. I will definitely recommend them in the future to my friends.

    Julie T.

    I contacted getting old and getting old regarding some old tax debt and credit card debt that I needed to address and had been putting off. miss Irving in the office was very very nice and put me at ease. I met with Jaime Gingold. She was very nice and explained the procedure to me and what would be left owing to the Internal Revenue Service and the State of Georgia after my case was done. My case has now been completed and I am on my way to a new start. Thank you Gingold and Gingold for all of your help.

    Anna T.

    Amazing! Outstanding!! They went over and beyond..I would recommend them to anyone needing a lawyer!!

    Write a review