The Thy Will Be Done Law Blog
The Thy Will Be Done law blog. From California estate planning law and celebrity Wills (or lack thereof, a la Prince) and probate disputes (Aretha Franklin) to estate matters around the world (the estate of Queen Elizabeth II) and in antiquity (Attalus III, who willed his kingdom to the Roman Republic), as well as pieces of a more academic nature, join attorney Ryan J. Casson for interesting and informative legal overviews and inheritance accounts from the trusts and estates world. Please click the Legal Disclaimers link below and be reminded that nothing on this website may be used as legal advice.
When Is a Tax Return Not a Tax Return? Ninth Circuit’s Strict Stance on IRS Debt in Bankruptcy
Californians: A return filed after an SFR does not reset the bankruptcy discharge clock. As I mentioned in my prior article here, one key factor in determining whether IRS tax debt is dischargeable in bankruptcy is the “3-2-240 rule,” which includes the requirement that the tax return for the debt in question must have been filed at least two years before the bankruptcy petition. But what qualifies as a “return” under bankruptcy law?
Discharging IRS Tax Debt in Bankruptcy in California
If you’re struggling with IRS tax debt, you may be wondering whether filing for bankruptcy can provide relief. The good news is that, in some cases, IRS tax debt can be discharged—but only if you pass a 3-pronged test that bankruptcy and tax practitioners sometimes refer to as the “3-2-240 rule.”