When you owe back taxes it feels like there's no hope of paying the IRS back. Don't fret, use this top secret guide to crack the IRS code and get out from under the force of the most powerful collection agency in the world!
Top 3 Secrets for Discharging Tax Debt with Bankruptcy
1. The 3 Year Rule: If your debt is less than 3 years old it cannot be discharged through bankruptcy.
2. 100% Compliance, or Else: You must be caught up on ALL tax filings in order to discharge a tax debt through bankruptcy. Additionally, if the IRS had to file SFRs (Substitute for Returns) you will not be able to discharge your debt through bankruptcy.
3. The Magic Number: Your Tax Returns must be filed and accessed more than 24 months prior to filing for bankruptcy. This means the returns were filed AND processed and you were billed for tax debt 24 months before applying for bankruptcy.
The Secret to Stop IRS Collections For Good:
If you meet the Tax Debt Bankruptcy requirements, the IRS can't take any collection actions against you under Automatic Stay of Collections.
But you have to be careful, even if you pass their tests, bankruptcy is not exactly your Get-Out-Of-Tax-Debt-Free Card. In a few short years, the IRS may still be able to collect on your debt!
Always consult with a professional before you attempt to discharge your debt through bankruptcy or you could make your tax situation worse in the long run!