If you are struggling with a significant amount of IRS tax debt in Los Angeles area, you may be considering filing for bankruptcy as a way to discharge the debt. In this blog, we will discuss the process of discharging IRS tax debt through bankruptcy and what you need to know before making this important decision.
When you file for bankruptcy, the purpose is to discharge or eliminate certain types of debts that you owe. While most debts can be discharged through bankruptcy, there are some types of debts that cannot be discharged, including most taxes.
However, there are certain conditions that must be met in order to discharge IRS tax debt through bankruptcy. These conditions include:
The tax debt must be at least three years old.
The tax return for the debt must have been filed at least two years prior to filing for bankruptcy.
The tax debt must not have been assessed by the IRS within the last 240 days.
The taxpayer must not have committed tax fraud or evasion.
If these conditions are met, you may be able to discharge your IRS tax debt through bankruptcy. However, it is important to note that the process of discharging IRS tax debt through bankruptcy can be complex and requires the assistance of a qualified bankruptcy attorney.
Before filing for bankruptcy to discharge IRS tax debt, it is important to consider the potential consequences. For example, bankruptcy will have a negative impact on your credit score and will remain on your credit report for up to ten years. Additionally, filing for bankruptcy will also affect your ability to obtain credit in the future.
In conclusion, while filing for bankruptcy may be a viable option for discharging IRS tax debt, it is important to weigh the potential consequences before making this decision. If you are considering filing for bankruptcy to discharge IRS tax debt, it is highly recommended that you seek the assistance of a qualified bankruptcy attorney.
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