February 28, 2014 (Press-News.org) Bankruptcy can be lifesaver for so many people drowning under debt they know they can't pay back. It can erase credit card debt, medical bills, and many other types of unsecured debt and give people the opportunity to start on a fresh financial footing.
However, discharging debt in bankruptcy has its limitations; not all debt can be erased. Amid the upcoming tax season, many people have questioned whether back taxes can be discharged in a bankruptcy as well. The answer is: it depends.
Discharging taxes in Chapter 7 bankruptcy
Taxes can be discharged in a Chapter 7 bankruptcy--also referred to as liquidation bankruptcy. Essentially, in a Chapter 7 bankruptcy, an individual's qualifying assets are liquidated and the proceeds are used to pay off his or her debts. All remaining eligible debt thereafter is erased.
However, not everyone who owes back taxes can get them erased; certain factors must be met.
Eligibility
To be eligible for a discharge of taxes in a Chapter 7 bankruptcy the following must exist:
- The taxes can only be income taxes; payroll taxes cannot be erased in Chapter 7 bankruptcy
- A tax return must have been filed for the specific taxes a person wishes to discharge at least 2 years before he or she files for bankruptcy
- The taxes owed are at least 3 years old from the date the bankruptcy is filed
- At least 240 days must pass from the date of the IRS assessment on the taxes owed
- The individual did not file a fraudulent tax return or willfully attempt to avoid paying taxes
The caveat
However, even if all of the above criteria are met, an individual may still not qualify for a discharge of his or her taxes in a Chapter 7 bankruptcy. If the IRS has already recorded a lien against the individual's' property before the bankruptcy is filed, the taxes cannot be discharged in a Chapter 7 bankruptcy. The IRS isn't obligated to remove the lien even if a filing takes place and the obligation to pay the tax lien remains.
Consulting with a bankruptcy attorney
Due to the intricate nature of the requirements, qualifications, and procedures involved with bankruptcy law, consulting with an experienced bankruptcy attorney who understands the intricate nature of the law is advised--particularly when taxes are involved. A lawyer can offer advice and the best route to take as it pertains to individual circumstances.
Article provided by McIntyre, Panzarella, Thanasides, Hoffman, Bringgold & Todd, P.L.,
Visit us at www.mcintyrefirm.com
Can I erase back taxes in a bankruptcy?
Discharging debt in bankruptcy has its limitations; not all debt can be erased. Amid the upcoming tax season, many people have questioned whether back taxes can be discharged in a bankruptcy.
2014-02-28
ELSE PRESS RELEASES FROM THIS DATE:
Study shows primary care doctors more likely to misdiagnose cardiac disease in women
2014-02-28
A recent study has shown that primary care doctors are seemingly at a higher frequency of missing the proper diagnosis when it comes to heart disease in women. According to a recent study, primary care physicians are sued for medical malpractice more often than physicians practicing in other fields--specifically in situations involving misdiagnosis of coronary heart disease in females.
The study
The research was conducted by The Doctors Company, a medical malpractice insurance carrier based in California. Company researchers examined 41 medical malpractice lawsuits ...
New federal regulations may not be enough to eliminate trucker fatigue
2014-02-28
An attempt to increase the safety of the nation's roadways is receiving criticism from the commercial trucking industry. Forbes and The Wall Street Journal recently ran articles addressing the issue, with interviews of a number of leaders in the commercial truck driving business as well as those who operate the vehicles. Both claim new regulations put in place by the Department of Transportation's Federal Motor Carrier Safety Administration (FMCSA) are not reducing truck driver fatigue.
Instead, the truckers argue the new regulations have cut down on their productivity. ...
April trial date scheduled for transvaginal mesh MDL
2014-02-28
Surgical mesh has been around for decades. In the 1950s, it was solely used to repair hernias. However, in the mid 1990s, the Food and Drug Administration approved the product to treat weak pelvic floor muscles--mainly in females. Manufactures then began manufacturing transvaginal mesh.
What is transvaginal mesh?
Transvaginal mesh is essentially a synthetic surgical mesh sling. The mesh device is utilized to treat Pelvic Organ Prolapse--a condition that occurs when the pelvic muscles become too weak to support the body's internal organs. The mesh device is also used ...
Bankruptcy may be the solution to the ills caused by underemployment
2014-02-28
As the economy improves from the recession of 2008, more and more people who were previously unemployed are returning to work. Although this is mainly a good thing, many are suffering from the problem of underemployment. This problem often manifests itself when a person takes a job that pays significantly less than their previous position. It can also occur in minimum wage jobs that simply do not pay enough to cover basic living expenses or do not offer benefits like health insurance.
Unfortunately a new job may do little to relieve financial burdens. Some individuals ...
Crash highlights importance of gaining experience, driving responsibly
2014-02-28
Getting a driver's license at age 16 is an exciting time for many teenagers. In order to earn their licenses, most will undergo months of supervised driving and safety education to gain experience and learn how to drive in dangerous conditions. Laws exist in Nevada and every other U.S. state that require teenage drivers to obtain a learner's permit while learning how to drive. This is an important safeguard; car accidents are the leading cause of death of teenagers in the U.S., say the Centers for Disease Control and Prevention.
In 2010, 20 drivers between the ages of ...
Snowball fight suspension calls attention to college crime consequences
2014-02-28
The occasional escapade or questionable decision is practically an inevitable part of the college experience, as many students in Washington County, Oregon, know firsthand. Unfortunately, occasionally situations get out of hand and students find themselves facing charges of college student crimes. A seemingly innocent snowball fight that recently led to the suspension of one University of Oregon student and talks of criminal charges against others underscored the fact that college crimes can happen and have unexpected consequences.
Snowball fight seen as assault
The ...
Dialing while driving is the most distracting activity behind the wheel
2014-02-28
Over the past several years, there have been a number of studies that have discussed the dangers of using cellphones while behind the wheel. However, a recent study has found that the most dangerous aspect of using a cellphone while driving is dialing a number, rather than talking on the phone itself.
The study, which was recently published in the New England Journal of Medicine, tracked the driving habits of 109 experienced drivers (average of 20 years driving experience) and 42 young drivers that had just been issued their licenses. To keep tabs on the participants ...
Former NFL player indicted in New Jersey for mortgage fraud
2014-02-28
In October of 2013, a former NFL player and his mother were indicted in New Jersey for being involved in a mortgage scam. The football player played as a wide receiver played on four different NFL teams between 1984 and 2000, two of which were the New England Patriots and Philadelphia Eagles. At the time of his indictment, he was the pastor of a local church that he founded and the head football coach at a nearby school, says Fox News.
The former football player and his mother reportedly submitted false information to obtain five different loans on her home within a ...
MN driver safety program to help offenders escape tickets ruled illegal
2014-02-28
Typically, the risk of receiving a ticket is one factor that motivates people to drive safely, but for years, drivers who violated traffic laws in certain parts of Minnesota have had the opportunity to take a safety course instead of receiving a ticket. In theory, safety courses teach good habits that reduce the risk of drivers being involved in car accidents, but still, the thought of so many traffic violations going unpunished and unrecorded is troubling from a safety standpoint.
Fortunately for other motorists, bicyclists and pedestrians, a Wabasha County court has ...
Winter weather has New Yorkers driving on thin ice
2014-02-28
For everyone with a driver's license in New York, driving in snowy and icy conditions is just a part of life. No matter how many years of experience a person has with winter driving, an accident can happen; even the best of drivers can be surprised by poor road conditions, and other drivers always pose a risk. While driving can be risky at any time, it's especially dangerous during this season's bitter cold and sudden snowstorms.
One of the most treacherous winter driving hazards is black ice, says the Daily Herald. This type of ice is so dangerous because it's nearly ...
LAST 30 PRESS RELEASES:
Music-based therapy may improve depressive symptoms in people with dementia
No evidence that substituting NHS doctors with physician associates is necessarily safe
At-home brain speed tests bridge cognitive data gaps
CRF appoints Josep Rodés-Cabau, M.D., Ph.D., as editor-in-chief of structural heart: the journal of the heart team
Violent crime is indeed a root cause of migration, according to new study
Customized smartphone app shows promise in preventing further cognitive decline among older adults diagnosed with mild impairment
Impact of COVID-19 on education not going away, UM study finds
School of Public Health researchers receive National Academies grant to assess environmental conditions in two Houston neighborhoods
Three Speculum articles recognized with prizes
ACM A.M. Turing Award honors two researchers who led the development of cornerstone AI technology
Incarcerated people are disproportionately impacted by climate change, CU doctors say
ESA 2025 Graduate Student Policy Award Cohort Named
Insomnia, lack of sleep linked to high blood pressure in teens
Heart & stroke risks vary among Asian American, Native Hawaiian & Pacific Islander adults
Levels of select vitamins & minerals in pregnancy may be linked to lower midlife BP risk
Large study of dietary habits suggests more plant oils, less butter could lead to better health
Butter and plant-based oils intake and mortality
20% of butterflies in the U.S. have disappeared since 2000
Bacterial ‘jumping genes’ can target and control chromosome ends
Scientists identify genes that make humans and Labradors more likely to become obese
Early-life gut microbes may protect against diabetes, research in mice suggests
Study raises the possibility of a country without butterflies
Study reveals obesity gene in dogs that is relevant to human obesity studies
A rapid decline in US butterfly populations
Indigenous farming practices have shaped manioc’s genetic diversity for millennia
Controlling electrons in molecules at ultrafast timescales
Tropical forests in the Americas are struggling to keep pace with climate change
Brain mapping unlocks key Alzheimer’s insights
Clinical trial tests novel stem-cell treatment for Parkinson’s disease
Awareness of rocky mountain spotted fever saves lives
[Press-News.org] Can I erase back taxes in a bankruptcy?Discharging debt in bankruptcy has its limitations; not all debt can be erased. Amid the upcoming tax season, many people have questioned whether back taxes can be discharged in a bankruptcy.