Will filing bankruptcy cover any IRS debt ?

Question

Will filing bankruptcy cover any IRS debt ?

Answer 1

will not filing bankruptcy cover any irs debt??

Answer 2

No, Any return filed within 3 years of the filing for bankruptcy protection that you have an outstanding balance will not be discharged in banruptcy.  There are a couple other rules, but a good banrkruptcy attorney can advise you.

Answer 3

no nor will it cover any fines or fees paid to courts.  You can set up a pymt plan with the irs.  As long as you meet with them they will work with you.

Answer 4

You must schedule all debts and assets when you file bankruptcy.  As a general rule, income taxes over three years old would be discharged in bankruptcy.  In a Chapter 13 payment plan, you can avoid penalties but not the tax and interest.  

If you don't have an attorney, get one. Not a paralegal document preparation service, a lawyer.  This is not a do it yourself project.

Answer 5

Bankruptcy will not discharge tax debt, nor remove tax liens.  The tax revenues are down, due to state of the economy.  IRS is being even more aggressive to collect taxes.  The same thing holds true for state income tax.

Student loan is another debt that survives bankruptcy. Students were getting loans for college, and then declaring bankruptcy after graduation.  The government has put a stop to that.