Dear Valued Clients and Visitors: As our nation responds to COVID-19, our firm is taking precautionary measures by closely following and reinforcing the guidelines from the CDC and local health authorities. Our physical office is open on a intermittent basis. However, please be assured that we are open for business and ready to serve your needs.

If you have a tax problem or inquiry please call and if we are not in leave a message. A return phone call will be made within a short period of time. Now is the time to address your tax matter. We remain committed to our clients and colleagues through these unusual times. Please stay safe and healthy.

Law Offices of Robert T. Leonard, APC
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Finding Real Life Solutions To Your Tax Problem

Taxes In A Chapter 7 Bankruptcy: Legal Guidance

In order for a liability due to the IRS to be considered for a bankruptcy discharge in a Chapter 7 bankruptcy, the tax liability needs to meet the following bankruptcy code requirements:

1. The liability is due a minimum of three years prior to the bankruptcy filing.

Example: The taxes filed for the year 1999 become due April 15, 2000. They are then eligible for discharge on April 16, 2003.

Note: Be aware that there can be no extension requests to file a return whether this return was completed by a representative or by the individual themselves. However, if the request for extension had been made, then the three years will be extended to the actual date the extension came due.

2 .The returns must be filed a minimum of two years prior to the filing for bankruptcy.

A. A return needed to have been actually filed.

B. If the IRS had filed a Substitute for Return (SFR) that return will not qualify for having filed a return for bankruptcy purposes. The taxpayer is the one who actually has to file a return.

3. The liability assessment must be made a minimum of 240 days before filing. The return cannot be fraudulent.

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Call us at 818-224-7935 or toll free at 888-408-9486 to schedule a free consultation with attorney Rob Leonard and discuss bankruptcy and all other tax relief options available to you.

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