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Re: Protecting one's ASSets...


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Posted by Parry (67.5.186.16) on January 18, 2004 at 20:11:00:

In Reply to: Re: Protecting one's ASSets... posted by InBigDebt on January 18, 2004 at 20:01:57:

You can discharge (wipe out) debts for federal income taxes in Chapter 7 bankruptcy only if all of these five conditions are true:

The taxes are income taxes. Taxes other than income, such as payroll taxes, Trust Fund Recovery Penalty or fraud penalties, can never be eliminated in bankruptcy.

You did not commit fraud or willful evasion. You did not file a fraudulent tax return or otherwise willfully attempt to evade paying taxes, such as using a false Social Security number on your tax return.

You pass the three-year rule. The tax return was originally due at least three years before you file for bankruptcy.

You pass the two-year rule. You actually filed the tax return at least two years before filing the bankruptcy -- having the IRS file a substitute return for you usually doesn't count. However, in some bankruptcy courts, agreeing to and signing the substitute return counts as filing a return for purposes of this rule.

You pass the 240-day rule. The income tax debt was assessed by the IRS at least 240 days before you file your bankruptcy petition, or has not yet been assessed.


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