The recent case of United States v. Helton, Case No. 20-5686 (6th Cir., 2021) addresses the dischargeability of taxes under 11 U.S.C. § 523(a)(1)(C). The dischargeability of taxes is a somewhat complicated maze of Bankruptcy Code provisions that requires a little bit of analysis.
The Code starts with a general rule that taxes are not dischargeable. See 11 U.S.C. § 523(a)(1).
However, taxes may be dischargeable if three tests can be met. Those tests are summarized as follows:
- The 3-year test;
- The 2-year test; and
- The 240-day test.
3-year test
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