Bankruptcy and Offers in Compromise - IRS Taxes

CAUTION: Before you go bankrupt, have legal counsel determine if the taxes are dischargeable in bankruptcy. Many times, taxpayers have gone through bankruptcy, only to find out later that the IRS tax problems were NOT solved. Consideration might also be given to an Offer in Compromise.

Referenced is a case example where one of the several rules for discharge was not met. Note: there are several other rules, but this case illustrates the point. See Young vs. USA (12/1/2000) - involving the rule concerning claims for taxes for which the return was due three years or less before the petition was filed. Consult  a lawyer. The facts and law may be different for your specific situation.

Some links and information are provided. However, a  tax professional should be consulted before any action is taken.
 

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The above limited information is intended for informational purposes only.  If legal advice or other expert assistance is required, the services of a competent professional should be sought, and this general information should not be relied upon without such professional assistance. 

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