Article

Can Late-Filed Taxes Be Discharged in a Chapter 13 Bankruptcy?

Author
  • Robert P. Achenbach (Agricultural Law Press)

Abstract

Although bankruptcy is designed to provide a new start for debtors by discharging debts, the Bankruptcy Code also balances that purpose against the interests of the public in collecting taxes and the interests of unsecured creditors who receive less than their full claims. If not properly informed and advised, debtors may proceed through bankruptcy with the expectation that all debts will be wiped away once they complete their plan payments, only to be surprised that some debts, especially late-filed federal taxes, survivethe bankruptcy process. Although a recent bankruptcy case illustrates this danger, the case leaves open a very small crack opened by the U.S. Supreme Court that could allow late-filed taxes to be discharged in narrowly defined circumstances.

How to Cite:

Achenbach, R. P., (2018) “Can Late-Filed Taxes Be Discharged in a Chapter 13 Bankruptcy?”, Agricultural Law Digest 29(22), 169–170.

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Published on
16 Nov 2018