Is there a statute of limitations on owed back income taxes in IL? Mine go back to 1997 & they are still harassing me. Also I included them in my 2006 bankruptcy and they said I still owe them. Is that legal?
2 Answers from Attorneys
You are still liable for the IL income taxes, as described. Generally, income tax liability
is not discharged in bankruptcy. Your discharge of debts will indicate which debts were
eliminated; certain debts such as taxes, student loans, child support, and others will not
be discharged in bankruptcy.
Illinois generally has 20 years to collect. You should talk to the attorney who helped you with your bankruptcy to determine whether the taxes should have been discharged. Income taxes can be discharged in certain circumstances defined in the bankruptcy code. Check with a bankruptcy attorney to see if your tax obligations qualify.