Yes, taxes older than three years can often be discharged in bankruptcy, including the penalties and interest that have accumulated.
- Taxes that are more than three years old, filed on time, and not audited can be discharged in bankruptcy, including penalties and interest.
- If your taxes were audited, the discharge period starts from the date of the audit, so older debts may still be discharged.
- Filing late with an extension does not prevent discharge after three years from the filing date, giving you a fresh start.