Fraudulent Returns, Withholding Taxes, Property Taxes:
- Fraudulent Returns: Without exception, taxes from which an individual filed a fraudulent return or willfully attempted to evade such tax will not be eligible for a discharge in bankruptcy. This can mean submitting false documents or neglecting to report income to the IRS. If you filed fraudulent information on your tax return, it’s unlikely that filing bankruptcy can help alleviate your tax situation.
- Property Taxes: Property taxes are another concern that many people have, especially for homeowners that are going through or have experienced a foreclosure on their home. In order for a property tax to be discharged in bankruptcy, the debt must have been incurred more than one year before the bankruptcy filing. Keep in mind, however, that just because an individual may be eligible for a discharge of these debts, it does not mean that the underlying lien on the house, car, etc. for which these debts were assessed goes away.
- Withholding Taxes: Withholding taxes can also become a problem for both business owners and individuals. Whether you own a business that must withhold taxes for your employees or you are self-employed and required to withhold taxes that are not otherwise deducted from your pay, you must ensure that the required withholding taxes are remitted to the government. If you owe tax debts in either of these situations, they will not be discharged in bankruptcy.(click the link for a good article on Eliminating Taxes in Bankruptcy by Kathleen Michon).
The attorneys at T&P Law have the experience needed to determine whether or not bankruptcy can help your tax situation. We serve the following areas: Dallas County, Tarrant County, Collin County, Denton County, Smith County, and the surrounding areas including: Dallas, Arlington, Fort Worth, Irving, Grapevine, Carrollton, Addison, Frisco, Plano, Richardson, Garland, Tyler, Mesquite, Highland Park, Lakewood, McKinney, Rowlett, Desoto, Tyler and Wylie.