The 11th circuit recently issued an opinion regarding the dischargeability of taxes in bankruptcy when the debtor filed the tax return late.  In Justice vs. U.S., the debtor did not file tax returns on time.  Over a few years, the IRS issued deficiency notices and eventually assessed taxes based upon a substitute return.  The 11th Circuit determined that the tax debt could not be discharged in bankruptcy.  The Court followed the so-called Beard test regarding whether the debtor made an honest attempt at complying with applicable tax law.  Because the debtor filed returns so many years late and only after the IRS made the tax assessment, the Court ruled against the debtor.

If you owe back taxes or are suffering under the heavy hand of the IRS collection process, we may be able to help.  At Hurtt & Johnson, our attorneys have successfully discharged over one million dollars of federal and state tax debts through the bankruptcy courts.  For taxes that cannot be discharged, our attorneys assist clients with halting the government’s collection efforts and approving an affordable repayment plan through the court.  Please call us today to schedule a free and confidential initial consultation to evaluate your options.