Legal Question in Bankruptcy in Pennsylvania

Bankruptcy & the IRS

Attempting to negotiate an Offer-In-Compromise (OIC) with the IRS, but due to my expected future income, etc., I will still owe over $100K (that is what they are demanding that I raise my offer to). Is bankruptcy an option in dealing with the IRS? From what I have read, you may file for bankruptcy three years after the tax has been assessed. The back taxes that I owe are from tax years 1998 through 2002, so I think I have cleared that hurdle. Any information on this subject would be greatly appreciated!


Asked on 4/05/07, 10:53 pm

1 Answer from Attorneys
Matthew Nahrgang Nahrgang & Associates, P.C.

Re: Bankruptcy & the IRS

If the debt is older than 3 years and tax returns were filed or it was assessed more than 2 years ago, the debt is non priority and can be discharged. Then, the only question remaining is whether you are eligible for Chapter 7 or 13.

I trust this answers your questions, but feel free to call or E-mail on a free initial basis.

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Answered on 4/06/07, 11:11 am


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