Tax Debt And Bankruptcy

To discharge tax debt in bankruptcy is a complex process. The IRS and the North Carolina Department of Revenue have specific rules and procedures that must be followed, but an experienced attorney can help you determine if tax debt relief is an option for you through the bankruptcy process.

At Sigmon & Henderson, PLLC, we can identify which taxes are dischargeable with precision and complete the work to ensure that your bankruptcy includes the relief you deserve from old tax burdens. If your tax debt cannot be discharged, we can help you structure an affordable plan to pay back the debt on a reasonable time frame using Chapter 13 bankruptcy. Our experienced Gastonia tax debt lawyers can streamline the process for you and guide you to a resolution through a professionally prepared Chapter 7 or Chapter 13 bankruptcy filing.

Contact Sigmon & Henderson, PLLC, to schedule a free initial consultation with a knowledgeable and effective attorney. We have been guiding individuals and families through the bankruptcy process to debt relief in North Carolina since 1979. Call us today at 704-269-6374.

North Carolina Bankruptcy Debt Relief Lawyers

Basically, there are five rules to determine if your tax debt is dischargeable in bankruptcy. Each rule contains caveats and requires detailed analysis, but generally, income taxes, excise taxes, sales taxes, employment taxes, tax liens and some property taxes can be discharged if they meet these requirements:

  1. The due date for the tax return must be more than three years old.
  2. The filing of the tax return must have occurred more than two years prior to filing for bankruptcy.
  3. The tax must have been assessed more than 240 days prior to filing for bankruptcy.
  4. The tax return must not have been fraudulently filed.
  5. Tax evasion must not have occurred by submitting false information on your tax return or by omitting information.

We can help you eliminate tax penalties and interest even if your taxes fall outside of these five rules or if they do not fall within the categories of taxes listed.