One often used technique for resolving unpaid personal income tax debt is now in doubt. Practitioners should take care in advising delinquent return filers that bankruptcy may be available, after a two year waiting period, to discharge the tax debt. Whether or not a tax obligation is dischargeable in bankruptcy is, in part, determined by 11
Many states have their own personal income tax. Generally these states also have laws that require a taxpayer to submit a copy of the IRS audit report if the federal liability is adjusted due to a reallocation of income or deductions on a previously filed return. The failure to do so may cause bankruptcy discharge problems
Income tax as well as some other types of tax can be discharged in bankruptcy if certain conditions are met. This applies in consumer bankruptcy cases, both Chapter 7 and Chapter 13, and covers Federal, State and local income tax liability. However, all requirements must be met before the bankruptcy is filed or the debt will remain
Are Oregon highway use taxes dischargeable in bankruptcy? Yes, if certain conditions are met, a debtor in bankruptcy can discharge taxes incurred in Oregon for use of the highways. Claims for state and federal highway use taxes levied against truckers based on the weights of vehicles turn up frequently in Oregon bankruptcy cases. The state is