LOUISVILLE, KY - Most people are told that tax debt can never be erased in bankruptcy. That is not true. Louisville attorney Nick C. Thompson says older income taxes can normally be discharged. The key is in aging it. The time spent in a payment plan counts; the time spent making an offer in compromise doesn't count towards those 3 years. The timing rules determine when income taxes finally qualify.
Income tax debt may be dischargeable when it clears three timing tests. The return must have been due more than three years ago. It must have been filed more than two years ago. And the tax must have been assessed more than 240 days ago. The return must be filed without fraud or evasion.
These dates are easy to miscalculate. Thompson says even experienced attorneys have miscalculated them by a single day and cost clients the discharge. He reads the IRS account transcript codes to pin down the exact assessment and due dates before a case is filed. He is a former tax prosecutor and holds U.S. Tax Court License #51, a credential very few consumer bankruptcy attorneys carry.
For Thompson, that timing is where a tax case is won or lost.
"The whole case can turn on a single date. I read the IRS transcript codes to find the exact assessment date, because missing it by one day can cost you the discharge." - Nick C. Thompson, Bankruptcy & Foreclosure Attorney
Only income tax debts qualify for the discharge. When it does not, a Chapter 13 plan can still help. It stops IRS collections, spreads the balance over a three- to five-year repayment, and reduces penalties and interest. In a plan, the debt is managed on a set schedule instead of the IRS setting the repayment terms.
Thompson has practiced in Kentucky since 1991 and provides no-cost consultations. His firm holds a 4.8-star rating across more than 81 Google reviews. He serves six Kentucky counties: Jefferson, Oldham, Bullitt, Spencer, Nelson, and Meade. Filers can read his guides on discharging income tax debt and on Chapter 13 bankruptcy in Louisville.
About: Nick C. Thompson has practiced bankruptcy and foreclosure defense in Kentucky since 1991, with more than 35 years of consumer defense experience. His office is in Louisville, and he serves Jefferson, Oldham, Bullitt, Spencer, Nelson, and Meade counties.
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Media Contact
Name
Nick Thompson Bankruptcy & Foreclosure Attorney
Contact name
Nick C. Thompson
Contact phone
(502) 625-0905
Contact address
800 Stone Creek Pkwy STE 6
City
Louisville
State
KY
Zip
40223
Country
United States
Url
https://www.bankruptcy-divorce.com/
