Tax Debt and Filing Bankruptcy
Perhaps the most stressful type of debt to face in terms of falling behind is tax debt. Penalties, interest and other additions to the original amount owed can make it very difficult to ever get ahead on these payments and put this problem behind you. In addition, the IRs has powerful collection options at its disposal that can cripple anyone. Fortunately, bankruptcy laws can provide a person with needed relief, but there are technicalities involved with doing so that will require the help of an Oklahoma bankruptcy lawyer.
It’s widely thought that tax debts cannot be discharged in bankruptcy, but that is only partially true. A person who needs help with getting out from under a burdensome tax debt can eliminate or substantially reduce this debt if certain criteria are met. These criteria include:
1. The tax debt owed must have originated from income tax debt.
2. The due date for filing the tax return from which this debt arose is at least three years in the past.
3. The tax return was filed at least two years prior to the bankruptcy petition.
4. Any tax assessment made by the IRS is at least 240 days old.
5. The tax return was not fraudulent.
6. The taxpayer has not been found guilty of tax evasion.
Bankruptcy Lawyers Can Help
If you are facing tax debt that you don’t feel you’ll be able to pay off, you need to seek the help of an Oklahoma bankruptcy lawyer who understands these technicalities and who can present you with options for putting this problem behind you for good.