If you have been told that income tax can never be discharged in bankruptcy, then I have good news for you. Income tax can be discharged in bankruptcy if the tax meets certain requirements.
In general, income taxes are dischargeable if
If you have employees and your tax debt is related to withholding tax (Form 941 or 940) from your employee’s pay, then you may not discharge that debt in bankruptcy, ever. You may, however, stop IRS collection activity by filing a Chapter 13 bankruptcy and paying the nondischargeable tax back over 5 years.
Attorney Tim Pletter offers a free consultation to analyze your tax debt and help you decide if bankruptcy is the right way to deal with your tax debt. Call Tim at 203-787-8041.
Attorney Tim Pletter works directly with his clients, and most of your contact will be directly with him. Please contact our Stratford, Connecticut, office today to arrange your free consultation