Tax Debt

We are often asked if tax debt can be discharged in bankruptcy.

If the IRS already filed a substituted tax return for you then the answer is NO. But if they have not then read on.

There are three main rules at play: the 3-year Rule, the 2-year rule, and the 240-day rule. You have to meet all three rules to discharge the taxes.

3-year Rule: is it 3 years from the day the tax return was due?
2-year Rule: is 2-years after the return was actually filed?
240-day Rule: is it 240 days since the IRS “assessed” the tax?

We have clients use the IRS’s online “Get a Transcript” service and download a copy of the “Tax Account Transcript” (NOT a tax “return” transcript). The transcript is the official record of the filing date, due date, assessment date, and some other important info that could affect dischargeability.

If you can get this transcript we can let you know whether your taxes will be dischargeable

Call us at 619-800-8804 or email us at attorneys@alzatevarley.com