How do I handle taxes during a bankruptcy?

 Posted on August 21, 2019 in Chapter 13 Bankruptcy

If you file bankruptcy in Maryland, then you may know that there are some debts you must continue to pay. If you file a Chapter 13, the IRS explains there are certain things you must do in regards to your taxes. If you fail to do them, then you could end up having your bankruptcy dismissed, which means you cannot get help or protection through the process.

The IRS explains that it is essential to pay any taxes that come due during the course of your case. You should also file all your taxes and make sure you are current on your filings. You want to be sure that you have filed all your tax returns in the four years prior to your bankruptcy specifically.

You may be able to get assistance if you cannot pay your taxes and bring things current. The IRS does offer payment plans and something called an offer in compromise. You should get more information on these options if you want to consider them. The IRS has a helpline you can call for more information.

You, your attorney or a trustee from the bankruptcy court can contact the IRS with questions about your taxes as related to your bankruptcy case. It is essential to make sure that you understand everything going on with your taxes and that you stay on top of things as it could negatively affect your bankruptcy case if you forget something or do something wrong. This information is for education and is not legal advice.