Many clients want to know if tax debt is dischargeable; it often is. The question is, which taxes can be discharged and which can’t. The most important variable is the date of the tax involved.
Conditions for Taxes to Be Dischargeable
At David W. Brauer, PLLC, we have compiled a short list of the kinds of taxes that can be discharged, and the conditions under which they can be discharged:
- Michigan and federal income taxes can generally be discharged if they are old enough (two years and 240 days); however, the tax return must be timely filed.
- Taxes assessed after you file for bankruptcy cannot be discharged.
- Tax returns that are judged to be fraudulent are not dischargeable.
- Interest and penalties on federal tax debts are dischargeable if the underlying tax is also dischargeable.
- Some sales taxes are dischargeable in Michigan.
- Property taxes are dischargeable if the tax was incurred before the commencement of the case and was last payable without penalty more than one year before the bankruptcy petition was filed.
Call Howell’s Unpaid Taxes Attorney Today
As you can see, the laws governing taxes and bankruptcy are complex and contain many exceptions. This is why it is so important to hire a bankruptcy lawyer who knows what you can and cannot do.
Learn About the Bankruptcy Tax Advantages
David W. Brauer, PLLC meets that definition of knowledge and experience. We would like to hear from you today about your tax problems, and we can help you determine whether your taxes can be discharged.
Can your income tax debt be discharged? For answers, call or e-mail the Howell tax debt relief attorneys at David W. Brauer, PLLC at (517) 548-1998.