Contrary to popular belief, a taxpayer may discharge income taxes in bankruptcy as long as the bankruptcy is not filed too soon after the tax return is filed. As a general rule, you can discharge income taxes that become due more than 3 years before filing bankruptcy, as long as it has been at least
Frequently I meet with small business owners who own companies that have become so burdened with debt that I describe the corporation as being “toxic.” Even if business improves and cash flow increases, the corporate entity is so weighted down by bank liens, court judgments, and tax debt, it can never recover. The business may