State and Federal Income Taxes
1.General rule is that federal and state income taxes owed on a timely filed tax return may be discharged in bankruptcy of personal liability if the bankruptcy petition is filed more than three years after the tax agency assessed the income tax.
2.If the tax return was not timely filed, the time period for discharging the income taxes are different. Discuss your specific facts with an attorney.
3.If the tax return has not been filed then the income taxes cannot be discharged in bankruptcy. Also if the tax returns are not filed then you may be charged with the crime of tax evasion.
4.You may desire to repay a non-dischargeable tax through a Chapter 13 reorganization, where applicable, to avoid seizures of assets and allow a more reasonable payment schedule. If there are no tax liens, or if the tax liens do not attach to equity in property, then this non-dischargeable tax may be repaid through a Chapter 13 without interest. Discuss your specific facts with an attorney.