Tax debt discharged though bankruptcy then not

[jhay2277]

In the early to mid 2000s I was self-employed and did not file tax returns for several years. In 2009 I finally filled back tax returns for years 2005-2009 but did not pay the tax debt. Soon there after my self-employed business began to fail and I filled a chapter 7 bankruptcy in 2011. My attorney at the time included my tax debt from 2005-2009 in the bankruptcy filing and it was discharged, or so I thought. I just now found out that the IRS did not accept the discharge because the debt was not 3 years old at the time of the bankruptcy and that I still owe all these back taxes which are collectible until 2020. I now just work normal job and there is no way I can afford to pay this huge tax debt that I thought was discharged. The IRS is now threatening to garnish my pay. I only filled bankruptcy because of tax debt and now it seems that I went through bankruptcy for nothing.

Do I have any options?

 

[tranquility]

In the early to mid 2000s I was self-employed and did not file tax returns for several years. In 2009 I finally filled back tax returns for years 2005-2009 but did not pay the tax debt. Soon there after my self-employed business began to fail and I filled a chapter 7 bankruptcy in 2011. My attorney at the time included my tax debt from 2005-2009 in the bankruptcy filing and it was discharged, or so I thought. I just now found out that the IRS did not accept the discharge because the debt was not 3 years old at the time of the bankruptcy and that I still owe all these back taxes which are collectible until 2020. I now just work normal job and there is no way I can afford to pay this huge tax debt that I thought was discharged. The IRS is now threatening to garnish my pay. I only filled bankruptcy because of tax debt and now it seems that I went through bankruptcy for nothing.

Do I have any options?

If you hired an attorney to file bankruptcy, maybe. Not knowing the tax debt has to be three years old before subject to BK would fall below the standards of a professional. If you did it yourself, no.

If you did it yourself your only option is to contact the IRS to make an offer in compromise or an installment plan. Without the threat of BK, they are less likely to accept your offer. Get a professional to submit some OIC about doubts about collectibllity.