Discharging Penalties And Interest On Tax Debt Through Bankruptcy | Folsom, CA Lawyer Explains

Yes, taxes older than three years can often be discharged in bankruptcy, including the penalties and interest that have accumulated.

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

 

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