Can I keep certain types of tax debts when filing for bankruptcy?

Yes, you can keep some types of tax debt when filing for bankruptcy in California. Under California law, there are three main types of tax debts that can be kept by the debtor: (1) taxes on recent returns, (2) taxes that have been assessed within the last three years, and (3) trust fund taxes. Recent tax return debts are any taxes that were due for returns or extensions filed within one year of filing for bankruptcy. These taxes must be paid off in full to be kept by the debtor. Taxes that have been assessed within the last three years are taxes that have been assessed and are due but have not yet been paid. These taxes can be kept by the debtor but must be paid off in full. The last type is trust fund taxes, which are payroll taxes that are withheld from employee wages and are the responsibility of the employer to pay. Trust fund taxes are one of the few types of taxes that cannot be discharged in bankruptcy and must be paid in full. In summary, California law allows for certain types of tax debt to be kept by the debtor when filing for bankruptcy. These types of tax debt include recent tax returns, taxes that have been assessed within the last three years, and trust fund taxes. All of these types of taxes must be paid off in full in order to be kept by the debtor.

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Can I keep certain types of tax debts when filing for bankruptcy?

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