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Pre-Bankruptcy Tax Discharge Analysis
Pre-Bankruptcy Tax Discharge Analysis
Filing for bankruptcy with the hope of wiping out tax debt only to discover that most of it survives is a painful and expensive mistake. Not all tax liabilities are dischargeable, and the rules that determine what qualifies are complex, time-sensitive, and easy to get wrong. RightWay Tax Relief Group provides a detailed analysis of your IRS and state tax history before you file, so you know exactly which debts may be eliminated and which will follow you out of bankruptcy.
Why Tax Debt and Bankruptcy Don't Always Mix
Many taxpayers assume that filing bankruptcy will eliminate their tax debt the same way it handles credit cards or medical bills. The reality is very different. IRS obligations are subject to a specific set of timing rules including the three-year rule, the two-year rule, and the 240-day rule that determine whether a particular tax year qualifies for discharge. If even one of those thresholds isn't met, the debt survives. Penalties and interest tied to non-dischargeable taxes also survive. Without a thorough analysis before filing, you could go through the entire bankruptcy process and still owe the IRS nearly everything.
Who Needs Pre-Bankruptcy Tax Discharge Analysis
This service is designed for anyone who is considering bankruptcy and has outstanding federal or state tax liabilities. Whether you're exploring Chapter 7, Chapter 13, or simply trying to understand how your tax debt fits into the bigger picture, this analysis gives you the clarity you need before making a major financial decision. It's also valuable for bankruptcy attorneys who need a detailed tax-side evaluation to properly advise their clients.
Benefits of our services.
Year-by-year analysis of which tax debts may be dischargeable
Review of IRS transcripts and account records
Evaluation against the three-year, two-year, and 240-day rules
Identification of penalties and interest tied to non-dischargeable debt
Assessment of whether alternative resolution may be more effective
Detailed report to support bankruptcy attorney coordination
Analysis of both federal and state tax liabilities
Remote consultations available nationwide
Know Exactly What You're Walking Into
Bankruptcy is a significant decision and when tax debt is involved, making that decision without a clear picture of what will and won't be discharged is a gamble you can't afford to take. Too many people file only to discover that their IRS balance survived the process, leaving them right back where they started with fewer options. At RightWay Tax Relief Group, we give you the information you need before you commit. We pull your IRS transcripts, analyze every tax year in question, and tell you honestly what's likely dischargeable and what isn't. If bankruptcy makes sense, you'll go in fully informed. If it doesn't, we help you explore alternative paths that may resolve your tax debt more effectively. Either way, you'll make the decision with your eyes wide open.
They Stopped Me From Making a Huge Mistake
Michael H.
Construction Foreman
I was about to file Chapter 7 thinking it would take care of everything I owed the IRS. RightWay Tax Relief ran the numbers and showed me that most of my tax debt wouldn't qualify for discharge. They helped me go a different route one that actually resolved the debt and saved me from going through bankruptcy for nothing. I'm grateful every day that I called them first.
How can we help you?
Frequently Asked Questions
Can bankruptcy actually eliminate IRS tax debt?
In some cases, yes but only if the tax debt meets very specific criteria. Federal income taxes may be dischargeable in Chapter 7 if the return was due more than three years ago, was filed more than two years ago, and the assessment was made more than 240 days before the bankruptcy filing. If any of these conditions aren't met, the debt survives. That's exactly why this analysis is so critical before filing.
What is the difference between dischargeable and non-dischargeable tax debt?
Dischargeable tax debt is tax liability that can be legally eliminated through bankruptcy. Non-dischargeable tax debt is liability that survives the bankruptcy process meaning you still owe it after your case is closed. Payroll taxes, trust fund recovery penalties, fraudulent returns, and tax debts that don't meet the timing rules are all typically non-dischargeable. Our analysis identifies which category each of your tax years falls into.
What are the three-year, two-year, and 240-day rules?
These are the timing thresholds the IRS uses to determine dischargeability. The three-year rule requires that the tax return was due at least three years before the bankruptcy filing. The two-year rule requires that the return was actually filed at least two years before filing. The 240-day rule requires that the tax was assessed at least 240 days before the bankruptcy petition. All three must be met for a given tax year to qualify and certain events like prior bankruptcy filings or offers in compromise can extend these timelines.
What if my analysis shows that most of my tax debt won't be discharged?
That's valuable information because it means bankruptcy may not be the right solution for your tax situation. In those cases, we help you explore alternatives like an offer in compromise, an installment agreement, or currently not collectible status. The goal is to find the resolution path that actually addresses your debt, not just the one that sounds like the easiest fix.
Do you work with bankruptcy attorneys?
Yes, and we encourage it. This analysis is specifically designed to complement the work of a bankruptcy attorney by providing the detailed tax-side evaluation that falls outside the scope of most legal filings. We can provide your attorney with a comprehensive report breaking down which tax years may qualify for discharge and which will not, helping them advise you more effectively.
Should I get this analysis done before or after I file for bankruptcy?
Before always before. Once you file, the process is already in motion and any tax debt that doesn't qualify for discharge will follow you out of the case. Getting this analysis done in advance gives you the information you need to make a fully informed decision, and in some cases, it may change your strategy entirely. Think of it as the essential due diligence step that protects you from a costly surprise.
our process
Our Simple 4-Step Tax Resolution Process
Our structured approach is designed to address IRS tax problems efficiently while protecting your rights every step of the way.
Step 1
Review
We evaluate your situation and identify available resolution options.
Step 2
Strategy
We develop a structured approach based on your specific circumstances.
Step 3
Representation
We communicate directly with the appropriate tax authorities on your behalf.
Step 4
Resolution
We work toward a compliant outcome aligned with your situation.
Get started with your free estimate
Why Professional Representation Matters
Tax matters often involve technical requirements, deadlines, and detailed documentation. Professional guidance helps ensure that decisions are informed, submissions are accurate, and communication with tax authorities is handled properly.
Working with credentialed practitioners can provide reassurance and clarity during situations that may otherwise feel complex or overwhelming.
Speak With a Tax Professional Today
If you need guidance regarding a tax matter, our team is here to help you understand your options and determine next steps.
RightWay Tax Relief Group exists to resolve tax problems, restore compliance, and protect taxpayers from aggressive IRS and state enforcement actions.
We provide ethical, strategic, and lawful tax resolution services for individuals and business owners facing back taxes, audits, liens, levies, garnishments, and compliance failures.
Our mission is to replace fear with clarity and chaos with control.
