If you file for Chapter 7 bankruptcy, there are certain tax debts that can be eliminated if you meet these specific requirements:
- You can eliminate debt for unpaid income taxes.
- If your tax debt is at least three years old, it qualifies under bankruptcy.
- You must have filed a tax return for the debt you are trying to eliminate at least two years before you file for bankruptcy.
- The income tax debt must be evaluated by the IRS at least 240 days before you file for bankruptcy.
- You can’t avoid unpaid taxes with bankruptcy if you purposely avoided paying them or if you engaged in fraud.