Created: Friday, 03 November 2017 09:47
“Late Filed Tax Returns Create a Bankruptcy Discharge Problem” By Mary Lopinot
Bankrupt individual taxpayers have long been able to discharge most income tax liabilities in bankruptcy. Under the Bankruptcy Code, most income tax liabilities of individual taxpayers are dischargeable if they did not come due within the last three years and are not the result of tax fraud (subject to a few exceptions). Taxpayers considering bankruptcy should be aware, however, that if you didn’t voluntarily file your tax return on time, you may have lost the ability to discharge your income tax debts in bankruptcy.
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