Bankruptcy and your taxes

Filing for bankruptcy gives debtors relief from most debts; however, not all debts are dischargeable in a bankruptcy. For example, taxes are treated differently than other types of debts during a bankruptcy action. For example, if you are being audited by the IRS and file for bankruptcy relief, the bankruptcy will not stop the audit. It may stop collection actions during the bankruptcy but it will not stop the audit from proceeding. Most taxes are not dischargeable in a bankruptcy case. There are a few cases where taxes may be dischargeable if certain criteria are met.

For more on taxes and bankruptcy read, “How Bankruptcy Impacts Your Taxes.

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