Are there ways to eliminate tax debts by filing for bankruptcy?

Generally, most tax debts cannot be wiped out in bankruptcy. In Chapter 13 you are able to include your tax debt in the repayment plan. If the following conditions exist, the taxes may be discharged:

  • Taxes are for federal and state income tax
  • Tax return was due at least three years prior to the bankruptcy filing
  • Tax assessment took place at least eight months before the bankruptcy filing
  • Tax return was not fraudulent and there was no attempt to evade the tax