Discharge Income Taxes Through Bankruptcy
In certain situations, income taxes can be discharged (eliminated) through bankruptcy. Under the Bankruptcy Code, whether a tax obligation is dischargeable is determined by when the tax became due. If a you owe state or federal income taxes the taxes are dischargeable if you filed your tax return and:
- The tax return was due more than 3 years prior to the bankruptcy filing. (If you obtained an extension, the due date would be the extension deadline); and
- Your income tax return was actually filed more than 2 years prior to the date you file your bankruptcy; and
- The income taxes were assessed by the IRS or Massachusetts DOR more than 240 days prior to your bankruptcy filing; and
- You did not file a fraudulent return or willfully attempt to evade paying taxes.
If you meet all of the above criteria, then your personal income tax debt is dischargeable. Moreover, in Bankruptcy if the underlying tax obligation is dischargeable, the interest and penalties are also dischargeable. However, if the underlying tax obligation is non-dischargeable, so are all related interest and penalties.
Contact a Massachusetts Income Tax Attorney
If you owe personal income taxes and don't have the ability to pay, it is important that you contact a Massachusetts attorney who has experience helping clients with tax problems. Our attorneys offer a free consultation and the money you spend on legal fees will likely be small compared to the amount that you would spend repaying the tax you owe.
Free Consultation With A
Massachusetts Lawyer
(617) 497-7141
At Grantham | Cencarik, P.C., we offer a FREE one hour consultation with all potential new tax clients. This gives you an opportunity to meet, or speak with the bankruptcy attorney that will be working with you on your matter. Moreover, we offer simple flat rates and allow you to pay your legal fees in monthly installments.
The Boston Massachusetts bankruptcy lawyers at Grantham | Cencarik, PC operate as a debt relief agency located in Cambridge and serving clients in Boston and eastern Massachusetts, including Cambridge, Braintree, Somerville, Revere, Brockton, Chelsea, Peabody, Quincy, Saugus, Winthrop, and the following counties: Essex, Middlesex, Norfolk, Plymouth, and Suffolk.
