2000 Tax Liability and Ch. 7

[Tankerwife]

What is the name of your state? GA

I have a tax liability from 2000 and just received a tax levy for my bank account.

I have some other bills we have thought about filing ch. 7 to clear.

Will this tax liability likely be erased because it is over 3 years old?

 

[AttorneyOney]

There are other factors besides the tax bill being 3 years old. The most critical is whether a return was filed that included all the income that was subject to tax. An IRS "Substitute for Return" doesn't usually count. In fact, once an SFR is filed, there's very little a taxpayer can do to make a tax deficiency dischargeable. Other factors include the amount of time, if any, during which an offer in compromise has been outstanding and whether the IRS considers that the tax was being avoided by fraud.

The rules for discharging taxes are so complex that you should really seek advice from a Georgia bankruptcy attorney.

 

[Tankerwife]

Thank you.

I figured the three year rule was to simple to be true.

The tax issue problem resulted from an error in failing to report all of my income.

I will assume it will be best to do a Comprimise or a payment plan.