Legal Question in Bankruptcy in Oklahoma

Re: tax liability canceled for years over three?

I'm sorry I didn't see your question sooner, and I apologize for the delay in answering.

The "three year" issue you mention comes from Bankruptcy Code 507(a)(8)(A)(i), which gives a priority to income taxes the return for which was due within three years of the filing of the bankruptcy petition, effectively making them nondischargeable. This is measured from the due date of the return in question. There are other similar rules -- two years from the date filed, and 240 days from the date assessed. And there are things which can extend these time periods, including the filing of an offer in compromise. The rules are complicated. And I agree with Herb Southern that you need to go back to your bankruptcy attorney and ask questions until you fully understand. If you want to read something to prepare yourself for that discussion, you can get my article on discharging taxes in bankruptcy from the articles section of my firm's website, www.bjhaynes.com. Good luck.

Re: tax liability canceled for years over three?

You probably should be confused on these points. The actual answer is "it depends". Under some circumstances, it is cancelled, and under others it is not. Your question does not provide enough information to make a call one way or another. I suggest that you sit down with your Attorney and ask again. If you do not understand, ask him/her to answer or explain in other words that you can understand, and specifically for your situation.