Blog Post

Bankruptcy photo_0_0You’ve heard that it’s Impossible.  However, it may be possible…but it’s complicated.  Here are some of the issues:

There is something called the ‘3 year rule’.  What the heck is that?  Well, if you could have your tax debt discharged, it would be because a particular lapse of time has occurred.  For this to happen, you would have to get over certain hurdles, and each hurdle has a different time frame of expiration.  The hurdles cover the whole gamut of activities: from when the tax return was due, to when you filed for bankruptcy.  If you fit within these required periods – not just one of them, but all of them – you have a chance of tax relief.   You see, if all of the required time periods have expired, then your tax debt moves from the “priority tax” file to the “non-priority tax” file.  That’s a good thing for you, as then you will have a better chance of having your debt discharged in a bankruptcy case.  The calculation of these rules (the Two-Year Rule, the Three-Year Rule and the 240-day Rule) is not so easy – it requires experience in interpreting your tax efforts and other things, such as IRS transcripts.  If Bankruptcy and Tax Relief is an issue that you are facing, it may be time to call in an expert who can counsel you!

For help with these and other tax issues, visit:  a Litchfield County, Connecticut tax attorney, admitted to practice in CT, NY, and before the US Tax Court.  We accept state tax problems for CT, MA and NY, and we accept U.S. federal tax problems from any location in the world.