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Enrolled Agent Explains Taxes and Bankruptcy


Granite City, Illinois, USA - Enrolled Agent Tommy Brown recently clarified the connection between taxes and personal bankruptcy. Brown discussed how taxes can qualify to be discharged in bankruptcy and gave tips for staying out of tax trouble during the bankruptcy process.

Brown noted that in Chapter 7 bankruptcy, there is the potential for tax debt to be liquidated, but the individual must pass a means test in order to qualify. In Chapter 11 and Chapter 13 bankruptcy, a payment plan is established.

For tax debt to be discharged in any bankruptcy, it must meet all of five criteria: the due date (plus extensions) must be at least three years ago, the debt must have been filed on a return at least two years ago, the tax must have been assessed at least 240 days ago, there must not be any fraud on the return or have been an attempt to evade taxes, and the taxes cannot be un-assessed or trust fund taxes.

During the bankruptcy process, Brown stated that the type of bankruptcy involved can affect how taxes are paid. For example, Chapter 13 creates a bankruptcy estate that is not taxable, while Chapter 7 and 13 bankruptcies for an estate that is a separate taxable entity.

Enrolled Agent Tommy Brown encourages all individuals considering bankruptcy to consult with a tax resolution specialist before and during the bankruptcy process to avoid further complicating a complex situation.

Tommy Brown, Enrolled Agent, has successfully resolved tax issues for thousands of clients nationwide. Individuals who owe past due taxes to the IRS and need to arrange a tax settlement or IRS debt relief, may contact him at



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