IRS Taxes and Debt Help Attorneys in Orlando, Florida
Not all IRS debt is dischargeable in bankruptcy. However, with the help of an experienced Orlando bankruptcy attorney, it is possible to achieve the debt relief you seek when dealing with the IRS. Basically, it comes down to timing and meeting 5 general requirements.
1. The Three Year Rule
For the IRS debt in question, the most recent due date for filing the return is more than three years old. Typically, a tax debt is due on April 15 of the year following the taxable year, although an extension to file a return delays the start time.
2. The Two Year Rule
A tax return has been filed or given by the taxpayer for the tax year(s) in question at least more than two years preceding the filing date of the bankruptcy.
3. The 240 Day Rule
The tax claim was assessed at least more than 240 days preceding the filing date of the case.
4. Non-Fraudulent Return
The tax return in question was non-fraudulent
5. No Willful Tax Evasion
The taxpayer has not engaged in activity deemed a willful attempt to defeat or evade the tax.
IRS Tax Relief by Filing Bankruptcy with Florida Bankruptcy Attorney
Please keep in mind that these are the basic requirements for an IRS debt to be eligible for discharge when filing bankruptcy. Within each requirement are potential pitfalls that, with the help of experienced Orlando bankruptcy attorneys, you can avoid.
When attempting to discharge IRS debt by filing bankruptcy, I advise clients to file a separate Adversary Proceeding along with filing the core bankruptcy case. The reason for this is to ensure that the Judge enters an Order determining that the debt is indeed discharged. This way, there is no question as to whether the debt is eliminated once the case is closed.
As you can see, it is possible to eliminate money owed to the IRS when filing bankruptcy. Depending on when you file the case and how old the debt is, you may be able to discharge all or most of the IRS debt you owe.
If you have questions about whether you can eliminate IRS debt, or when you are ready to speak to experienced Orlando bankruptcy attorneys to determine if you can indeed wipe out that debt, I hope you contact me.
