FAQ 10: Bankruptcy

Q: Can I discharge my tax debt through bankruptcy?

A: Generally speaking, individuals can discharge their income tax debt if the following four requirements are met:

• Three years have passed since the tax return was due,
• Two years have passed since the tax return was filed,
• 240 days have passed since the tax assessment, and
• The tax returns were not fraudulent.

Before filing for bankruptcy, it is very important to determine if the income tax debt is dischargeable.