Tampa Bankruptcy Lawyer · Bankruptcy and Taxes
Many people have questions about whether federal tax arrears and other forms of government debt can be discharged through bankruptcy. Like so many other areas of bankruptcy law, the answer depends upon your personal circumstances. IRS tax arrears are generally dischargeable under Chapter 7 or Chapter 13 bankruptcy, but only after a criteria has been met If the tax is at least 3 years old, the return has been filed for at least 2 years and there have no new taxes assessed within 240 days of the filing then the tax should be dischargeable.
By filing Chapter 13 bankruptcy, you can include debt for tax arrears in your court-supervised repayment plan, you can avoid the penalties and interests that would typically accrue over the agreed-upon length of the IRS workout. At the successful completion of the Chapter 13 plan, remaining debt for penalties and interests will be discharged by the court.
Can You Include Restitution in Your Plan?
Currently, the law does not allow a bankruptcy petitioner to include discharge of restitution owed to the government as a result of a conviction for a criminal act. However, if you have agreed upon a workout for repaying overpayment of government benefits, you may be able to include the debt in your repayment plan, as long as the government receives the amount of restitution owed. Penalties and interest that may otherwise accrue may be discharged upon completion of the three or five year plan.
Call for Government Fines, Penalties and Restitution Information 888-325-7602 | 800-438-9121
Everyone's circumstances differ. Get the facts from an experienced bankruptcy attorney at The Golden Law Group. The firm offers three convenient locations to serve you better. Wherever you are in the Florida Central Gulf Coast region, contact the firm to schedule a free initial consultation. Office locations include Bradenton, Brandon or Tampa. Their lawyers represents clients in communities throughout Manatee County, Hillsborough County and Saratoga County, Florida.