Discharging Taxes

Experienced Bankruptcy Attorney in Los Angeles

Bankruptcy law allows for the discharge of income tax debts under certain circumstances. Other taxes such as sales or payroll taxes may not be dischargeable. There are many complex aspects of this area of law, and you should speak with an attorney concerning your options. It is important to comply with tax laws and file your tax returns ON TIME in order to discharge tax debts in bankruptcy. 

Attorney Giovanni Orantes has advised many clients regarding tax debt issues, including individuals, small-business owners, and corporations. Mr. Orantes is dedicated to helping each client obtain the maximum debt relief allowable under the law. 

To learn more about your tax debt relief options, contact our firm. In a free consultation, Giovanni Orantes can explain what is and is not possible regarding our tax debts.

Discharging Taxes in Chapter 7 Bankruptcy 

Federal income tax debts can be discharged in Chapter 7 bankruptcy, provided that certain conditions are met: 

  • You must file returns for the taxes in question on time when due (returns are filed when due even if they are not filed until the last day of a timely requested extension).
  • The tax debt is at least three years old.
  • The Internal Revenue Service levied the tax more than 240 days before you filed bankruptcy. The date may be extended if the IRS suspended collection activity.
  • You did not willfully evade taxes or commit tax fraud.

Penalties on dischargeable taxes can also be discharged. Giovanni Orantes will carefully review your tax returns and the facts in your case. If you have tax debts that can be discharged, Mr. Orantes will seek the discharge of those taxes.

File Your Taxes on Time — Even if You Can’t Pay Them 

You should make sure you file your tax returns on time, even if you do not have money to pay them at the time you file. The reason for doing this is that by filing your tax return, you can preserve your ability to discharge tax debts in bankruptcy — and this is only one of the benefits as there are many benefits to filing on time. If you do not file a tax return, you will not be able to discharge those taxes.

Contact a Lawyer 

For a free consultation about discharging taxes in bankruptcy, contact the Orantes Law Firm 

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