Often, income tax debt is not fully dischargeable in Chapter 7 Bankruptcy or Chapter 13 Bankruptcy; however, there are some bankruptcy options available to individuals with back income taxes.
Income taxes may be dischargeable through Chapter 7 bankruptcy or Chapter 13 bankruptcy only if you meet all of the following conditions:
- Your unpaid back taxes must be related to a tax return that is at least three years old.
- The back income taxes must be related to a return that you filed at least two years ago.
- You cannot have been charged with, or conviction of, tax evasion.
- The back income taxes cannot come from a fraudulent tax return.
- The IRS or DOR assessed your income tax debt at least 240 days before you file Chapter 7 bankruptcy or Chapter 13 bankruptcy
The bankruptcy attorneys at Croke & Croke, S.C. understand how scary it can be to owe back federal or Wisconsin income taxes. Contact us so that we can provide you with bankruptcy options to deal with your back taxes.