Discharge of Federal Income Taxes in Bankruptcy

Discharge of Federal Income Taxes in Bankruptcy

A taxpayer may discharge federal income taxes in a Chapter 7 if ALL of the following criteria are met:
1.The tax is for a year for which a tax return is due more than 3 years prior to the filing of the bankruptcy petition;
2.A tax return was filed more than 2 years prior to the filing of the petition;
3.The tax was assessed more than 240 days prior to filing of the petition;
4. Lastly, the tax must not be due to a fraudulent tax return.