Can You Discharge Credit Card Debt Used To Pay Taxes In Bankruptcy?

It is tax season. My clients (and myself) are trying to find ways to pay the taxes that they owe to the IRS and State Franchise Tax Board. Paying your taxes with a credit card may seem like a good idea.  And in some cases it may indeed be a clever way to deal with the tax debt. But it does not always accomplish what you may think, at least not from a bankruptcy perspective. Before I get into that, [...]

2021-08-24T21:54:39-07:00April 6th, 2017|

Bankruptcy Can Get Rid of Tax Debts But Only If Returns Are Filed

Tax Returns Must Be Filed In Order To Be Discharged In A Bankruptcy Case Income tax debts can be discharged in bankruptcy. But not all of them. There are rules.  Lots of them. One of the rules is that the taxes must be at least 3 years old. This is measured from the date the tax return was last due to be filed. Another rule is that the taxes must be assessed more than 240 days prior to filing bankruptcy. [...]

2021-07-25T21:53:51-07:00September 28th, 2016|

Can Bankruptcy Eliminate California Sales Taxes to SBOE and CDTFA? Mark J. Markus

You can eliminate (discharge) sales tax obligations in bankruptcy if certain criteria are met. In California, sellers are required to pay sales taxes to the State Board of Equalization ("SBOE") now the California Department of Tax and Fee Administration (CDTFA) based on receipts from sales. On July 1, 2017 the State Board of Equalization became the California Department of Tax and Fee Administration (CDTFA). Many bankruptcy attorneys (and others) believe that sales taxes in California can never be discharged. This [...]

2021-08-30T10:29:20-07:00March 22nd, 2015|

To Discharge Taxes in Bankruptcy, File Tax Returns On Time

ALWAYS FILE YOUR TAX RETURNS ON TIME, even if you cannot pay the taxes you owe. Those of you who read my posts know that certain tax debts are dischargeable in bankruptcy. The basic (but definitely not all) requirements for discharge of income taxes are: The bankruptcy case must be filed more than 3 years after the last date in which the tax returns were due for a given tax year; It must be at least 2 years since the [...]

2021-08-26T18:23:23-07:00February 22nd, 2015|

Bankruptcy Alternatives Consolidation or Debt Settlement? What To Do?

Bankruptcy and Non-Bankruptcy Alternatives For Different Types of Debts There are many different kinds of debts and bills. There are mortgage, credit card, taxes, student loans, payday loans, alimony, child support, as well as debts that might come from negligence or other actions, and many more. People who find themselves unable to pay their debts are often confused about their options. Not unexpectedly, the options vary depending on a number of factors. I have divided the different options into two main [...]

2021-12-14T11:40:47-08:00October 8th, 2014|
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