can you file bankruptcy against the internal revenue service?
- Anonymous1 decade agoFavorite Answer
They can even come after your social security, unemployment benefits, or child support payments.
Don't mess with the IRS.
- HeatherLv 71 decade ago
No the money you owe the IRS is not included in bankruptcy. You will still owe them for the full amount due even if you do declare bankruptcy.
Debt piled on debt... Once upon a time claiming bankruptcy was like a "get out of debt free" card. Those days are long gone, and getting a bankruptcy discharged is much harder now. But if you really want to complicate an already complicated process then try to include an IRS tax debt into your bankruptcy.
You can't get off the hook that easy... Although an IRS debt can be included in a bankruptcy, it is very difficult. There are a number of factors that contribute to a tax debt not being able to be included. On top of that bankruptcy attorneys are not very experienced at tax law, and can easily make a mistake that won't allow your tax debt to be considered.
Even though the IRS can't pursue any collection actions against you during the period you're in bankruptcy the interest and penalties continue to add onto to the debt during the time it takes for the bankruptcy to be processed. And if your bankruptcy is dismissed, you'll owe all that money to the IRS.
The time spent in bankruptcy extends the Statute of Limitations on the debt. Normally the IRS only has 10 years to collect a debt from you. But the length of time you were in bankruptcy extends that time period.
- andyLv 71 decade ago
Most likely you will not be able to file for bankruptcy protection against the IRS since it is similar to Federally backed student loans.
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- Ryan MLv 71 decade ago
Generally not. The tax man and student loan debt is generally not able to be discharged. You MUST pay your taxes and you MUST pay for your own education. Generally no "oops" allowed for those two.
- 1 decade ago
No, you can't. Tax liability is not removed by bankruptcy.
- Barry auh2oLv 71 decade ago