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Olympia, WA Bankruptcy Attorneys
What happens to back taxes and IRS debts in an Olympia bankruptcy?
How are back taxes affected by a WA State bankruptcy?
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What happens to back taxes owed in an Olympia bankruptcy?
The general rule is that taxes are not dischargeable in bankruptcy. But there are a few exceptions.
If you owe INCOME taxes for a year due more than three years ago, there are no issues of tax fraud, you filed your return more than two years ago, and there has not been a tax levy on you—especially on real estate, IRA’s or 401(k)s—then you may be able to discharge all or part of the taxes in a bankruptcy. In most other situations, back taxes and IRS debts are not dischargeable in an Olympia bankruptcy.
If you owe the IRS or have other tax debts, be sure to raise these issues when you talk to one of our Olympia bankruptcy attorneys. We will be able to analyze your specific situation to determine how you can discharge as much in taxes as possible. Even if some of your tax debts are not dischargeable, however, you may be able to file a chapter 13 payment plan, where the court will protect you while you pay your taxes back.