Legal Question in Bankruptcy in California

Unfiled Federal Taxes are they exempt

The IRS wants back taxes for myself and my husband separately. My tax returns were filed promptly and taxes and penalities are owed for 1994/1995/1996. These are business taxes for a business that is OOB. And my husband owes taxes and penalities for 1987/1988/1989. He did not file returns. The total combined is approx 100K. If we file a joint chapt 7 bankruptcy are these taxes dischargable. The state of calif has come after him for back taxes not filed. Are all of these dischargable under chap 7.


Asked on 12/06/00, 12:07 am

1 Answer from Attorneys
Mark Markus Law Office of Mark J. Markus

Re: Unfiled Federal Taxes are they exempt

Tax dischargeability is an extremely complex area and I cannot give you an accurate response without first seeing the official tax transcripts for each of you. You mention that your taxes are "business taxes". I'm not sure what that means. You mean these are trust fund taxes, such as payroll taxes that were unpaid and passed through to you, or are they income taxes? It makes a huge difference as to whether or not they are dischargeable. As for your husband's taxes, they would not be dischargeable in a Ch. 7 if the returns have still not been filed. However, they might be dischargeable in a Ch. 13, depending, again, on what type of taxes they are. I have a good explanation of tax dischargeability on my web page, so you may wish to visit that for more information. If you desire a consultation after that, feel free to give me a call and I will be happy to go over your situation with you in more detail. Mark

http://www.bklaw.com/

(818)509-1173

Read more
Answered on 12/06/00, 10:55 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in California