Can I discharge my tax debt?

You can discharge your taxes in a Chapter 7 bankruptcy, but only under certain conditions.  First, the taxes in question must have been due at least 3 years ago.  This includes any extension dates.  The tax debt cannot be discharged if the last day to file under an extension was less than three years before you file.Secondly, you have to have actually filed the return.  If the IRS filed it for you, it doesn’t count and the debt won’t be discharged.  Also, if the return was filed within two years of filing for bankruptcy, the debt won’t be discharged.Third, if the taxes were assessed less than 240 days before filing, you cannot discharge the debt.  This rule may come into play when you have been selected for an audit or you filed an amended return in which you reported additional tax liability.  The 240 day limit may be extended by any time that there is an offer in compromise or a prior pending bankruptcy.