How does Bankruptcy Affect my Liability to the IRS?

Posted on October 30, 2013

Bankruptcy is a very effective tool for getting rid of tax liabilities. We don’t practice bankruptcy law here, so if you are eligible for a bankruptcy as it relates to your tax matters, we will tell you so and refer you to an appropriate attorney to handle your bankruptcy matters.

Most people think a tax liability is not dis-chargeable in a bankruptcy. That’s depends. If your tax liability is old enough and if you filed those tax returns long enough ago, the 1040 tax liability is actually dis-chargeable. Trust fund recovery penalty, the liability that stems from your business is never dis-chargeable in a bankruptcy. So, if none the programs that we have here will help you, and if you are eligible for a bankruptcy, we’ll make that referral for you.