Discharge of Taxes
 

Discharge of Taxes 

Special rules apply to determine whether taxes are dischargeable: (a) the tax year in question is more than three years prior to the date of the filing of the bankruptcy petition, (b) the tax in question has been assessed by the IRS or New York State more than 240 days prior to the filing the bankruptcy petition; (c) the tax return for the year in question was filed at least more than two years prior to the bankruptcy filing (substitute returns don't count), (d) the tax return was non-fraudulent and there is no showing of willful evasion of the payment of the tax and (e) the claim by the taxing authority is unsecured; if secured, the tax is discharged as to the debtor personally (in personam liability) but the lien is still valid as to any property it has attached to (in rem liability).