Can I wipe out tax debt in bankruptcy?

by Jeff Kelly, Esq. on July 1, 2009

in what can be wiped out in bankruptcy?

It depends.  If the tax debt is less than three years old, it cannot be wiped out.  If the tax debt is more than three years old, we may be able to wipe out the tax debt.  An important question that I will ask you is,  “Has any tax lien been filed against you and in which Georgia county was the tax lien filed?”   Tax liens can make your tax debt secured.

The age of the tax debt is determined by the date of the filing of tax return.  As a result, if you have not filed any tax returns for the past five years, none of your tax debt can be wiped out.   Sales taxes owed by self employed businesses can never be wiped out. Also, payroll taxes cannot be eliminated in bankruptcy.

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