You can often discharge income taxes with an irs bankruptcy.
First. I am not an attorney. This is not legal advice. This is just what I have seen. Be sure to talk to a good bankruptcy attorney. Some are great. Some suck. So you will want to talk to a few.
BANKRUPTCY REFORM WAS PASSED BY BOTH HOUSES OF CONGRESS AND SIGNED INTO LAW BY PRESIDENT BUSH IN APRIL, 2005. THE NEW LAW WENT INTO EFFECT IN OCTOBER 2005. BANKRUPTCY REFORM WILL MAKE IT MORE DIFFICULT FOR SOME PEOPLE TO GET RID OF THEIR DEBTS IN BANKRUPTCY. THE BASIC RULES FOR WHAT TAXES ARE DISCHARGEABLE IN BANKRUPTCY WILL NOT Change
Personal income taxes can be discharged when the taxes are at least 3 years old and were assessed at least 240 days before the bankruptcy filing and were voluntarily filed at least 2 years ago.
If you are considering filing bankruptcy and the IRS has filed a return for you know as a SRF or “substitute for return” you will want to talk to an attorney before filing the original returns. This is very important. Do not ignore this.
Income taxes less than 3 years old will not be discharged by a chapter 7 bankruptcy. Your attorney can recommend a chapter 7 or 13.
Even when the taxes are dischargeable you can still have a Federal lien attached to things that are normally exempt in the bankruptcy like the equity in a car or house or accounts receivables.
Written here are just some basics and examples the main point is that you need to talk to an attorney and not give up hope. Taxes can and are discharged in bankruptcies.
The IRS will be willing to put you on a payment plan. They would rather have their money slowly then not at all.