Whether or not overdue taxes are included in bankruptcy depends on the type of tax debt and the type of bankruptcy being filed.
In general, some types of tax debt may be dischargeable in bankruptcy, while others may not be dischargeable.
For example, income taxes that are more than three years old and meet certain other requirements may be eligible for discharge in a Chapter 7 bankruptcy or Chapter 13 bankruptcy. However, taxes that are less than three years old or that do not meet the other requirements may not be dischargeable.
It is important to note that certain types of tax debts are not dischargeable in bankruptcy, including payroll taxes, trust fund taxes, and taxes that were assessed within the past 240 days.
In addition, filing for bankruptcy does not necessarily mean that the debtor will not be required to pay their tax debts. In some cases, the debtor may be required to repay some or all of their tax debts through a repayment plan, even if they are dischargeable in bankruptcy.
It is important to consult with a bankruptcy attorney to determine how tax debts will be treated in a specific bankruptcy case, and to understand the options available for resolving tax debts.
