Do you owe past-due federal taxes that you cannot pay, then bankruptcy can be an option. By filing bankruptcy you can wipe out your back taxes, interest, and penalties. Though everyone doesn’t qualify to file bankruptcy If you qualify, bankruptcy might be an excellent solution to resolve your tax problems.
Before you consider filing bankruptcy, there are some things you should know:
All tax returns must be filed for tax periods ending within four years of your bankruptcy filing.
During your bankruptcy you must continue to file, or get an extension of time to file, all required returns.
During your case you should pay all current taxes as they come due.
Failure to file returns and/or pay current taxes during your bankruptcy may result in your case being dismissed.