Are state and federal tax obligations dischargeable in Chapter 7 Bankruptcy?

In North Carolina, certain tax obligations may be dischargeable in Chapter 7 Bankruptcy depending on the circumstances. Generally, taxes owed must meet the following criteria in order to qualify for discharge: the taxes must be income taxes; the taxes need to be at least three years old; the taxpayer should have filed a tax return more than two years ago; the taxpayer should not have committed any type of fraud or intentional act of evasion; and the taxpayer should not have filed a fraudulent return. It is important to note that the taxes must be income taxes in order to be dischargeable. Other types of taxes, such as payroll taxes, are not dischargeable under Chapter 7 Bankruptcy law in North Carolina. Additionally, in cases where the tax debt is owed to the federal government, the taxpayer must have attempted to pay the taxes in order to qualify for discharge. If the taxpayer has not attempted to pay the taxes, then the federal government will not agree to a discharge of the debt in most cases. In certain situations, a taxpayer may be able to negotiate a settlement with the IRS in order to reduce the amount owed. It is important to consult with an attorney to understand the specifics of your case and whether your taxes may be dischargeable in a Chapter 7 Bankruptcy.

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Are state and federal tax obligations dischargeable in Chapter 7 Bankruptcy?

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