It’s that time of year when you are thinking about taxes. If you are like many, many people, I am sure a smile is not crossing your lips right now. You are not looking out into the distance picturing flowers and unicorns. Instead, you are probably thinking, @#$%%%@. I don’t have a perfect solution to your hate of taxes, but for those that think there is no out from their tax debt, bankruptcy is certainly an option.
Here, I discussed the requirements to make taxes dischargeable in bankruptcy.
If you notice, one of the requirements is that the return should be filed more than 2 years prior to the bankruptcy. As such, filing a tax return is important. So my advice for you, is absent a very good reason (suggested by your CPA), file your tax return on time. File your return even if you can’t make the payment right now. Seriously! This way you start the clock running and will not be staring at your attorney two years from now, wishing you filed your return earlier.