![]() ![]() Example: Joe files for and receives an extension of time in which to file his 2008 taxes to October 15, 2009. However, if you get an extension of time to file, the three-year period runs from the date that the taxes are due under the extension. ![]() If Joe owes taxes for that year and wants to discharge them, the earliest he can file for bankruptcy is Ap(April 15, 2020, plus three years). ![]() Example: Joe's 2019 federal income taxes are due on April 15, 2020. In most cases, it is merely a matter of adding three years to this due date to determine the earliest date you can file for bankruptcy and still discharge your taxes. Typically, your federal and most state income taxes become due on or around April 15 of each year. This rule states that to discharge your back income taxes, they must become due at least three years before you file for bankruptcy. To discharge back income taxes, be aware that you must meet the requirements of all three rules.ฤก. There are some exceptions, and these rules do not apply to other types of taxes, such as property taxes. Under these rules, you can discharge income taxes that came due three years before filing for bankruptcy, as long as it has been at least two years since you filed the tax forms and 240 days since the taxes were assessed. The Bankruptcy Code sets out specific periods that determine if you can discharge your taxes, commonly called the 3-year, 2-year, and 240-day rules (the "3-2-240 rules"). Nonetheless, it is possible to discharge significant income tax debt in bankruptcy, if your tax debt fits within specific rules. Determining which back taxes are dischargeable can be a complex process. ![]() Moreover, the penalties and interest attached to these taxes are dischargeable as well, although there are some differences between the bankruptcy chapters (Chapter 7, Chapter 13, etc.). Contrary to popular belief, you can discharge some back federal, state, and local income taxes in bankruptcy in Pennsylvania. ![]()
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