Legal Question in Bankruptcy in California

Income taxes are dischargeable if: they were due more than three years before your bankruptcy filing; AND if YOU filed the return more than 2 years before your bankruptcy filing (the IRS filing on your behalf isn't good enough); AND if the taxing authority hasn't assessed the debt within 240 days of your bankruptcy filing.

For example: George timely filed his 2006 federal tax return that had been due April 15, 2007. In 2008, the tax man assessed George for those taxes from the 2006 period. After April 15, 2010, it will have been 3 years since George's taxes were due. If George files bankruptcy after April 15, 2010 he can discharge those 2006 income taxes. He can then walk the street, with no taxes on his feet.

Note: tax evasion or a fraudulent tax return filing would bar George from discharging that tax.

Be sure to consult a tax professional and bankruptcy attorney in your area before taking any action.

Disclaimer: the above as well as any information found on our Web site is not legal advice and should not be relied upon. It does not create an attorney-client relationship. Unilateral communications may be misconstrued as they do not address all facets, nuances, and particulars, or all means of addressing a situation. This is strictly my opinion provided for general informational purposes and it pertains to California law. Seek legal and other professional counsel before acting in relation to bankruptcy. It's worth the cost.