Age

• The taxes must have been due at least three years prior to filing the bankruptcy. This does not mean you had to file the taxes three years ago, but the taxes were due at least three years prior to filing your chapter 7 bankruptcy case.
  
  

Fraud

• Filing a fraudulent tax return that was later discovered by the IRS cannot be included in bankruptcy. Any attempt to avoid paying taxes with intent are non-dischargeable.
  
  

Filing Time Limit

• In addition to the taxes owed being from a tax period at least three years old, the tax return must have been filed at least two years prior to filing bankruptcy. For example, if you owe federal taxes from the tax year 2006, but did not file the tax return until 2009, you cannot include the taxes in a bankruptcy filed in 2010. Your taxes are from a tax year older than three years ago, but two years has not passed since you filed the taxes.
  
  

Taxes Assessed

• Your taxes owed must have been assessed by the IRS at least 240 days prior to filing bankruptcy. You may have filed a tax return in 2006 and the return contained an error that was not discovered at the time, therefore, the taxes were not assessed. The IRS must have discovered and assessed the taxes before 240 days prior to the bankruptcy filing.
  
  

Income Taxes Only

• You cannot file bankruptcy for any taxes owed on payroll taxes or fraud penalties. The taxes can be owed only on income.
  
  

Bankruptcy Attorney

• Bankruptcy is a very complex legal process. Incorporating the legalities of filing bankruptcy on federal income taxes will increase the difficulty level. A bankruptcy attorney can help you determine if your federal taxes can be discharged in your chapter 7 bankruptcy case.