Latest News About Can You File Bankruptcy On Tax Debt

You can sometimes file bankruptcy to deal with certain tax debts (especially older federal income tax), but many kinds of tax debt won’t be erased—and timing and documentation requirements matter a lot.[1][2]

What kinds of “tax debt” bankruptcy may (or may not) clear

• Often dischargeable (federal income tax, if specific rules are met): Chapter 7 may wipe out some qualifying older income tax debts.[2]
• Often not dischargeable / excluded: Payroll taxes/trust-fund taxes and fraud/willful evasion-related taxes generally can’t be discharged.[1]
• Not a full “wipe” in Chapter 13 either: Chapter 13 may help restructure what you owe (and can stop or slow collections while the case is active), but it may not eliminate every tax liability.[2][1]

The key timing tests (federal income tax)

For many people trying to discharge federal income taxes in Chapter 7, the typical requirements include:

• The tax return due date was more than 3 years before bankruptcy.
• The return was filed more than 2 years before bankruptcy.
• The IRS assessed the tax debt more than 240 days before bankruptcy.
• No fraud and no willful tax evasion.[6][1]

If your taxes are “too new” or don’t meet these tests, bankruptcy may still help by temporarily stopping collection and/or giving a repayment plan—but not necessarily erasing the debt.[1][2]

Practical “what to do next”

• Confirm the tax type (income tax vs payroll/trust-fund vs other).
• Get exact dates: when the return was due, when it was actually filed, and when the IRS assessed the liability (your IRS notices or account transcripts can show this).
• Talk to a bankruptcy attorney who routinely handles tax discharge issues, because small date differences can change the result. (This is especially important for Chapter 7 eligibility.)[7][2]

If you tell me (1) whether this is IRS federal income tax or state, (2) approximate tax year(s), and (3) whether the returns were filed (and roughly when), I can help you map which rules are likely to apply.