What If You Owe Taxes and Did Not File A Return?
Interviewer: So that will not work if the individual didn’t file the taxes and now the I.R.S. is saying, “You owe this amount.”
Vance: Yes, but you can also address that in a Chapter 13 bankruptcy. If you haven’t filed your taxes for the last three years or you just filed your taxes or you just filed your return for 2012 and you owe the I.R.S. $10,000.
Some Tax Debt Can Be Addressed in a Chapter 13 Bankruptcy and You May Be Able to Forego Additional Penalties and Interest
Now, you can work out a deal with the I.R.S. to pay that back but the whole time you’re paying it back, you’re paying it back with interest and penalties. Now, put it into a Chapter 13 bankruptcy, we can strip away any penalties and you pay back that debt without any further penalties.
There’s still a small amount of interest but without any more penalties so yes, you can address the I.R.S. debt in a Chapter 13 bankruptcy.