Expert: Mark J. Markus- California Bankruptcy Attorney - 7/23/2006

Question
In 1998 I filed for bankruptcy with the majority of the items being back taxes due to a business failure. In 1999 I received my papers telling me to keep track of these papers because this was my proof the items were discharged.  I'm now being told by the IRS that one of the items on my discharged list is not being honored by them
because at the time of filing it was debt owed from the 1997 tax year.  The claim I owe $34,000
now and at the time in 1997 it was $8,700.  My attorney that filed my bankruptcy that the IRS should have brought this fact up during the petition period and once the discharge papers were signed this item was discharged.  Who is right?

Answer
Taxes are either dischargeable or not.  It does not require any action from the taxing agency before, during, or after your bankruptcy case is filed.  Assuming that you filed a chapter 7 case, and if your case was file in 1998, there is no way that income tax obligations from 1997 were discharged.