Will chapter 7 wipe back taxes away?

Question

I am thinking of filing a chapter 7. I have researched and found this to be my best option right now. But one thing I have not found any info on is past tax. I owe fed about 10 grand. Will chapter 7 wipe this away also?

Answer 1

Maybe, Federal taxes that are assessed more than three years prior to the filing generally can be discharged. Notable exceptions are "substitute returns" filed by the IRS that you did not agree to and trust fund penalties.  

Answer 2

No.

If the judge dismisses taxes, the IRS will immediately file an appeal.

The IRS will suspend collection activities while you are in Cpt 7. Afterward, with 10 grand, you can offer an installment agreement, or if you want to plead hardship, talk to someone there (after). They will need a 433-A personal financial statement.

Answer 3

Income tax that has been owed for at least three years--this is 2004 and earlier--would be discharged in bankruptcy unless you filed the returns real late or have a new bill because of an audit. If you file a Chapter 13, you can eliminate penalties on newer years.

Retain an attorney to represent you. This is not a do it yourself project.

Answer 4

filing bankruptcy does not wipe taxes owed. you will still owe them!!!

Answer 5

nope, you still owe the feds.  do the right thing and work out a payment plan or it will haunt you forever.