Q: Can I discharge my back tax debt by filing a Chapter 7 Bankruptcy?
A: It is possible to discharge some income taxes in a Chapter 7 Bankruptcy, but we do not recommend that you start with a bankruptcy proceeding if the only reason that you are filing is for your tax debt. There are too many other remedies under the tax law that might resolve your situation without going through the pain and credit problems of a bankruptcy. The rules for discharge of income taxes in bankruptcy are complex. Newer tax debts are usually not dischargeable. If all else fails to resolve your tax debt problem then you may want to look to a Chapter 7 bankruptcy. It should be the last thing that you try.
You can never discharge Form 941 Employment taxes that you may owe from a business that you own or have owned in the past. Nor can you discharge a tax debt called a civil penalty.