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Does Bankruptcy Erase Income Taxes?
I cannot tell you how many times I hear Client’s tell me that their accountant (CPA) informed them that filing for Bankruptcy will not wipe out their IRS or NY income tax debts so they set up a payment arrangement with the IRS despite the fact that it is a huge burden.
The fact of the matter is that we have helped many of our Client’s wipe out hundreds of thousands of dollars of “income taxes” simply by filing Chapter 7 Bankruptcy.
Some tax debts are not wiped out in bankruptcy (e.g. sales, payroll, etc.) but income taxes are dischargeable (wiped out).
It is important to mention that there are three prerequisites that must be met prior to wiping out income tax in bankruptcy. However, in most cases all three requirements are easily satisfied.
Call Balisok & Kaufman, PLLC New York Tax & IRS Lawyers today at 718-928-9607 or email us at Law@BalisokKaufman.comFree Consultation
CIRCULAR 230 DISCLOSURE: Per regulations governing practice before the Internal Revenue Service, any tax advice contained herein is not intended or written for use, and cannot be used, to avoid tax penalties that may be imposed on the taxpayer.