Got unpaid taxes for 2012? October 16, those taxes reach the end of the line as priority claims in bankruptcy.
They lose their protected status and can be discharged in bankruptcy.
Discharged, as in, no longer a personal liability. No longer entitling the IRS to levy and garnish because of a bankruptcy discharge.
Taxes collectible for 10 years from assessment, outside of bankruptcy.
That’s the view from 30,000 feet on discharging taxes in bankruptcy. Let’s look at the details and see why October 15th is important if you have old taxes you haven’t paid.
Three rules govern discharge of taxes
To wipe out taxes in bankruptcy, three rules must be met. The first one, the “three year rule”, says taxes can’t be discharged until three years have passed since the tax return was last due.