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State Income Tax Bankruptcy

This is how to get the IRS account transcript you need in minutes. Discharging Kentucky and Indiana income taxes in bankruptcy is no different from discharging IRS federal income taxes. Accountants and lawyers used to file Form 8821 or 2848 in order to get them but now this can be done online. Below, we show you how to do it step by step.

The account transcripts are necessary to know if you waited long enough to file bankruptcy and wipe your income tax liability. Miss it by one day and you will not be able to discharge the income taxes. Moreover, the IRS will not tell you if you’ve waited long enough. Even if an IRS employee gives you a date, they are not liable for bad advice.

What You Need to Know About State Income Tax Bankruptcy

Often people enter into a payment arrangement until the taxes are aged sufficiently to file bankruptcy. To do this, you need the account transcripts and the tax transcript codes whether you use an attorney or the online tax discharge determinator program. We always suggest that you double-check by using the taxdischargedeterminator.com program. You also need the last two IRS returns to file with the court if you need to file bankruptcy. The account transcript will tell you the history of your account and if there has been an assessment, offer in compromise, late filing extension, or late receipt of a return which may extend the period of time you have to wait. The account transcript record is essential for determining if you have waited long enough to discharge your income taxes. It is not your tax return. Here are the steps.

  1. The webpage to get your IRS transcript: http://www.irs.gov/Individuals/Get-Transcript. If the IRS moves this page you need to you can also Go to irs.gov and then
    1. Do a search for “Account Transcript”
    2. Click on “Get Transcripts”
  2. Click “Create Account” (unless you already have one)
  3. Enter name, email address.
  4. Check email and get the “Confirmation Code”.
  5. Enter the code on the web page.
  6. Enter SSN, birth date, filing status, country, and address.
  7. Select the appropriate transcripts.

If you prefer to call the Priority Hotline, here is the phone number: 1-800-829-1040. You can get the transcripts online or by mail.

The types of transcripts available with this method include the following:

  1. Transcript of Return
  2. Account Transcripts
  3. Record of Account
  4. Wage and Income transcripts
  5. Verification of Non-filing Letter.

Of course, this presumes that your Kentucky or Indiana return was filed and received at the same time as the Federal return. A Kentucky income tax bankruptcy is essentially not different from the bankruptcy with the IRS.

Resources for Bankruptcy

Income Tax Bankruptcy Forms

File Bankruptcy on Income Taxes • Video

IRS Transcript Codes for Bankrupting Taxes

Chapter 13 and IRS Tax Returns and Refunds in Bankruptcy

How to Sue the IRS in Bankruptcy Court

If you are thinking about filing bankruptcy, don’t delay because timing is crucial. I am here to help you. So, contact my office right away to start the conversation. Nick C. Thompson, Bankruptcy Lawyer: 502-625-0905.

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