False. Non-priority IRS debts are dischargeable in bankruptcy. In Chapter 13 certain penalties, interest, and older taxes do not have to be accounted for in your plan. In Chapter 7, these non-priority debts may we wiped out entirely even though you do not have a repayment plan. It is a common misconception that all IRS debts need to be paid back.
File your returns in a timely and accurate fashion, and if you ultimately cannot pay those tax debts, you may have the option to discharge those taxes in bankruptcy. Unfortunately, many people who cannot pay their taxes make the serious error of not filing a timely tax return.
Call us today at 650.259.9200 or submit a consultation form online and we can meet with you for a free consultation to discuss how bankruptcy can resolve your tax problems.
Leave a Reply.
Request a Consult or Call Back Online, or Call Us at 650.259.9200
Law Office of Jason Honaker