{"id":2482,"date":"2018-07-17T18:00:09","date_gmt":"2018-07-17T18:00:09","guid":{"rendered":"https:\/\/phoenixfreshstartbankruptcy.com\/?p=2482"},"modified":"2022-04-29T08:58:49","modified_gmt":"2022-04-29T08:58:49","slug":"income-taxes-arizona","status":"publish","type":"post","link":"https:\/\/phoenixfreshstartbankruptcy.com\/income-taxes-arizona\/","title":{"rendered":"5 Facts about Income Taxes in Bankruptcy in Phoenix Arizona"},"content":{"rendered":"<p>Filing your bankruptcy case immediately stops virtually all tax collection actions against you in Phoenix Arizona. The IRS, your state taxing agency, and all other tax entities have to obey the \u201cautomatic stay\u201d just like any other creditor. This law requires them to stop all collection actions for\u00a0 immediately upon your filing.\u00a0 This means no more paycheck garnishing and no recording of tax liens on your home, vehicles, or other possessions. And no collection threats and phone calls from them. Here are 5 facts about Income Taxes in Bankruptcy.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"There_are_some_very_limited_sensible_contacts_that_are_still_allowed\"><\/span><strong>There are some very limited, sensible contacts that are still allowed.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-66288a676fcfa\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-66288a676fcfa\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/phoenixfreshstartbankruptcy.com\/income-taxes-arizona\/#There_are_some_very_limited_sensible_contacts_that_are_still_allowed\" title=\"There are some very limited, sensible contacts that are still allowed.\">There are some very limited, sensible contacts that are still allowed.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/phoenixfreshstartbankruptcy.com\/income-taxes-arizona\/#Certain_income_taxes_can_be_completely_written_off_%E2%80%9Cdischarged%E2%80%9D_in_bankruptcy\" title=\"Certain income taxes can be completely written off (\u201cdischarged\u201d) in bankruptcy.\">Certain income taxes can be completely written off (\u201cdischarged\u201d) in bankruptcy.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/phoenixfreshstartbankruptcy.com\/income-taxes-arizona\/#Some_income_taxes_can_never_be_discharged\" title=\"Some income taxes can never be discharged.\">Some income taxes can never be discharged.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/phoenixfreshstartbankruptcy.com\/income-taxes-arizona\/#A_bankruptcy_case_cannot_discharge_any_taxes_that_become_due_after_the_case_is_filed\" title=\"A bankruptcy case cannot discharge any taxes that become due after the case is filed.\">A bankruptcy case cannot discharge any taxes that become due after the case is filed.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/phoenixfreshstartbankruptcy.com\/income-taxes-arizona\/#Contact_Us_Today_For_Questions_About_Income_Taxes_in_Bankruptcy\" title=\"Contact Us Today For Questions About\u00a0Income Taxes in Bankruptcy\">Contact Us Today For Questions About\u00a0Income Taxes in Bankruptcy<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>The IRS and state tax agencies can still, after you file your bankruptcy case:<\/p>\n<ul>\n<li>start or continue an audit to determine your tax liability,<\/li>\n<li>send you a notice that you owe taxes (but it can\u2019t try to collect on that tax),<\/li>\n<li>make a demand for a tax return, and<\/li>\n<li>make an assessment of a tax.<\/li>\n<\/ul>\n<p>Essentially, the tax authorities can still take action to determine the amount of a tax. But they can\u2019t act to collect on any taxes.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Certain_income_taxes_can_be_completely_written_off_%E2%80%9Cdischarged%E2%80%9D_in_bankruptcy\"><\/span><strong>Certain income taxes can be completely written off (\u201cdischarged\u201d) in bankruptcy.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The law does get complicated. But most of the time discharging an income tax debt requires just meeting two conditions:<\/p>\n<ul>\n<li>the pertinent tax return was due more than 3 years before the bankruptcy case was filed (plus any tax return filing extension), and<\/li>\n<li>that tax return was actually submitted more than 2 years before your bankruptcy case is filed.<\/li>\n<\/ul>\n<p>There are other conditions but they involve circumstances that don\u2019t often apply to most people. The main point is that most income taxes can be discharged by filing the tax return and waiting long enough.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Some_income_taxes_can_never_be_discharged\"><\/span><strong>Some income taxes can never be discharged.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>There is one circumstance that doesn\u2019t apply to most people but is worth emphasizing. If a taxpayer filed \u201ca fraudulent return or willfully attempted in any manner to evade or defeat\u201d a tax, that tax can never be discharged. What this covers and does not cover is open to some interpretation. For example, would not filing a tax return for years be considered \u201ctax evasion\u201d for this purpose? Discuss any situation like this with your lawyer to find out whether it may cause you a problem.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"A_bankruptcy_case_cannot_discharge_any_taxes_that_become_due_after_the_case_is_filed\"><\/span><strong>A bankruptcy case cannot discharge any taxes that become due after the case is filed.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A bankruptcy filing can only cover and affect those debts that you legally owe as of the date of that filing. That applies to income taxes as well. So, especially under Chapter 13 consider delaying filing until the current year\u2019s tax is due. Then you can include that tax in the payment plan and be protected from its collection.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Contact_Us_Today_For_Questions_About_Income_Taxes_in_Bankruptcy\"><\/span><strong>Contact Us Today For Questions About\u00a0Income Taxes in Bankruptcy<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Whether bankruptcy is the best defense method for dealing with debt or taxes for your circumstances. A seasoned bankruptcy attorney helps you evaluate your debt relief options to help meet your goals, including protecting your home for as long as possible.<\/p>\n<p>Give <a href=\"https:\/\/phoenixfreshstartbankruptcy.com\">Phoenix Fresh Start Bankruptcy<\/a> Attorneys a call at 602-598-5075 to schedule a free consultation with one of our b<a href=\"https:\/\/phoenixfreshstartbankruptcy.com\/5-bankruptcy-questions-you-must-ask-your-arizona-bankruptcy-lawyer\/\">ankruptcy attorneys.<\/a> If you have any other questions about bankruptcy, one of our attorneys will be more than happy to offer advice on your particular situation.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Filing your bankruptcy case immediately stops virtually all tax collection actions against you in Phoenix Arizona. The IRS, your state taxing agency, and all other tax entities have to obey the \u201cautomatic stay\u201d just like any other creditor. This law requires them to stop all collection actions for\u00a0 immediately upon your filing.\u00a0 This means no more paycheck garnishing and no recording of tax liens on your home, vehicles, or other possessions. And no collection threats and phone calls from them. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2483,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/posts\/2482"}],"collection":[{"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/comments?post=2482"}],"version-history":[{"count":1,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/posts\/2482\/revisions"}],"predecessor-version":[{"id":4339,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/posts\/2482\/revisions\/4339"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/media\/2483"}],"wp:attachment":[{"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/media?parent=2482"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/categories?post=2482"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/tags?post=2482"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}