Category Archives: Taxes

Are you a bankruptcy practictioner or curious taxpayer interested in whether income taxes will go away by filing a bankruptcy case? Well, the rules involved are notoriously tricky, but can be summarized as follows: In order to discharge income taxes through bankruptcy, the taxpayer / debtor must qualify under three rules — the three year […]

Expecting a tax refund from the IRS or Massachusetts DOR? Thinking about filing a bankruptcy case to get rid of debt? Fine — but take a minute to think about how the two are related. Tax refunds are hidden assets in bankruptcy cases. Meaning they are not the sort of thing ordinary people consider assets […]

With April 15th of 2014 in the rear view mirror, it is now open season on discharging 2010 income tax debts (both state and federal) in bankruptcy court. Income taxes may not be usually dischargeable in bankruptcy, but the rules change once the debts get old. Debtors who filed a return on time, but who […]

As the tail end of the year rolls around, perennial questions spook bankruptcy lawyers about the advisability of filing a year-end bankruptcy case for a client who owes taxes to the IRS or Mass. DOR, or both. Northern California consumer bankruptcy maven Cathy Moran has posted some the essentials on her site, which gives inquiring […]

With April 15, 2013 in the rear view mirror, a new window of opportunity has opened up for people who owe back taxes for the year 2009. That’s because the required three year period from the 2009 due date (April 15, 2010) has now expired. Starting now, 2009 income taxes (both Massachusetts and federal) are […]

People behind on their Massachusetts state income taxes have an aggressive foe out there — the Massachusetts Department of Revenue. Mass. DOR has been taking some pretty far-out positions in court on bankruptcy cases filed by Massachusetts residents looking to discharge back taxes. Just recently, they argued in Judge Hoffman’s courtroom that all tax returns […]

Recently I was doing some research on the bankruptcy code and it’s controversial section 506, which deals with the deceptively simple concept of an “allowed secured claim,” but has in fact been the source of much bitter litigation in the consumer bankruptcy wars between debtors and creditors over the last twenty years. My eye caught […]

Lets say you owe back income taxes for a number of years, and are interested in whether filing for bankruptcy will cure (or at least alleviate) the problem. Fair enough, but before you rush off to bankruptcy court, or even to a bankruptcy lawyer, slow down a minute! Income taxes are dischargeable only if a […]