Expert: Terry Leeders - 5/6/2009

Question
I filled back taxes on May 2007.  I got a strong payment plan that I had been paying every month since December 2008.  (I owe about 50K).  The IRS increased my debt a year ago after internal auditing but that was included on the payment plan that was set up on December 2008.  If I go bankrupt in the future can I pay the taxes under the bankcrupt?  What are the requerements to get them discharg or penalties abated?

Thank you

Answer
To discharge income taxes:
1. Taxes must be at least 3 years old when filing BK.
2. Taxes must have been filed on time and accurate.
3. If late filed, or inaccurate, must have been filed/corrected more than 2 years before the bankruptcy is filed.

That is the loophole.