Tax debts are dischargeable in bankruptcy if the following conditions are met:
- The Three Year Rule: The owed taxes must be from a tax return due more than 3 years before bankruptcy was filed for.
- The Two Year Rule: It must have been at least 2 years since the return was actually filed and the date bankruptcy was filed for.
- 240 Day Rule: It must be at least 240 days since the IRS/DOR assessed the taxes and the day bankruptcy was filed for.
- The Fraud Rule: Any evidence of a willfully fraudulent return or tax evasion (criminal tax offenses) will automatically disallow any tax discharge with a bankruptcy.
You should be cautioned that taxes are not due until the April 15 or alter of the following year and that filing for an extension makes them due even later.
Other events, such as a offer in compromise, will also toll the above timelines.
If you have any questions please feel free to call or e-mail.