Personal income tax debts are treated different after October 2022
Although the general deadline for filing tax returns is April 15 of each year, many taxpayers choose to extend until October 15, 2022. October 15 has recently passed and for that reason, a debtor who did extend to file 2018 income taxes can now file bankruptcy and may be able to discharge income taxes for 2018 or such obligations may be treated as a general unsecured claim as opposed to a priority claim. Some of the variables impacting that result will be the date that tax return was filed, whether the return was filed timely, the date of assessment of the obligation and tolling events including but not limited to prior bankruptcy cases. Although an underlying tax may be discharged, tax liens are not avoidable in chapter 7 bankruptcy.
Sasser Law Firm offers free consultations to discuss bankruptcy options for debts such as personal income taxes for 2018. Our number is 919 319 7400.
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For more than 20 years, the Sasser Law Firm has been helping individuals and business owners sort through financial hardships to see the light at the end of the tunnel. Our North Carolina bankruptcy attorneys are all board-certified specialists, which means we have passed a complex exam, undergone a thorough peer review, and continue to earn legal education credits in this ever-evolving area of law.
