Under certain conditions, taxpayers who file for bankruptcy may be able to discharge some federal tax debt, but not necessarily all of it. Influencing factors include the age and type of the tax debt and when the taxpayer filed tax returns. At one bankruptcy proceeding that later led to litigation, the taxpayer and IRS entered a consent order that set the amount of the IRS’s claim. But an IRS audit subsequently found additional tax owed. A federal appellate court ruled that the consent order didn’t fix the taxpayer’s total tax debt and that additional taxes weren’t necessarily dischargeable. So the IRS could attempt to collect them. (C.K. Breland, Jr., CA-11, 5/31/24). Contact us with questions. © 2024