Earnings Taxes Can Be Discharged In Bankruptcy

There are two guarantees in life: Taxes and Death. Believe it or not, particular revenue taxes can be discharged in bankruptcy. Given that income taxes can be defeated that leaves only death to figure out. Possibly I’ll write a post on that someday. In the meantime, let’s focus getting rid of tax debt.

It is less difficult to discharge earnings tax than it is student loans. I remember the very first time I heard that revenue taxes had been dischargeable in bankruptcy. It was 8am on a Thursday morning and only about 20 of us showed up for the lecture. Apparently no one particularly desired to wake up early for a lecture. That particular lecture is a single one that modified the way I practice bankruptcy law and may be the one lecture that has made the largest distinction in my practice. In order to discharge taxes in bankruptcy there are a couple of criteria that need to be met.

 All of the criteria that go into determining if taxes can be discharged are also numerous to discuss in this post. The 1st three criteria that I consider are:


Have been the taxes due more than three years ago?

Had been the taxes filed more than 2 years ago?

Has the tax been assessed more than eight months (240 days) ago?

Other criteria incorporate, but are not restricted to, concerns surrounding the nature of the tax and if the returns have been filed fraudulently.

What Does It Suggest To Have Taxes Due More Than three Years Ago?

6355404323_ac5691e105_oTax returns for a distinct year are filed following that year (i.e. 2010 returns are filed in 2011). Traditionally, the return isn’t required to be filed till 15th of April. Furthermore, any income tax that is owed is also needed to be paid on April 15. Therefore 2010 taxes turn out to be due on April 15, 2011. Consequently 2010 revenue tax won’t be in a position to be discharged till April 15, 2014 (2010 earnings taxes due April 15, 2011 plus three years). On April 15, 2011 debtors will be in a position to discharge 2007 revenue tax. If you have any doubts about this, it is best choice to contact Tax Attorney Connecticut.

There are a couple of places where debtors can get messed up with the 3 year rule. This can be brought on by April 15, landing on a Saturday or Sunday. In addition, 2010 taxes and returns are due on April 18, 2011 because the IRS decided so (truly it was because Congress took so extended with specific legislation). Ultimately, filing for an extension will modify the date to a later date than April 15. Make sure you tell you attorney if you filed an extension! What Does It Suggest to Have the Returns Filed Much more Than two Years Ago?

1st point I want to make about this rule: If you want to discharge taxes for a specific year but haven’t filed a return for that year, you will not be ready to discharge the taxes.

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Changes in American online gambling legislation


           For many people it seems illogical and even a shame that such a huge market like United States is not open to many of those websites that offer gambling over the Internet, and that millions of American citizens do not have access and permission to enjoy in the entertaining content that can be found on these locations. Online gambling is an area which is experiencing a huge expansion and more and more people from all over the world find this type of playing enjoyable, efficient and profitable. Easy access and the improvements in technology make online gambling available at the palm of your hand and there is no need to actually go to a casino to hit that big jackpot which you’ve been waiting your whole life.




This situation is caused by complicated legal system and the overall structure of the United States, as well as political and social attitude towards gambling in general. Ever since the 1960s, when the famous Interstate Wire Act (1961) was introduced, the federal Government was trying to have full control over any gambling which might be done through “wires” and electronic devices. In reality, this law was intended to prevent mafia from transferring illegal money through wire communication, but it had some other consequences over the years. It restricted people from access to slots and poker machines, and some similar types of gambling, although it has been slightly modified in 2011, allowing the players to visit and gamble on casino and poker websites.

Another law was supposed to make an important change on the federal level, and this was in 1992 when The Professional & Amateur Sports Protection Act” (PASPA) was introduced. This legal act, also known as “The Bradley Act”, because of the senator Bill Bradley who proposed it, was strongly oriented towards the market of organized sports and the widespread illegal gambling that was surrounding this area. Therefore, it had little effect on virtual casinos, who could easily state in front of the court that they do not organize sporting events, but merely games of chance and cards.




The law that has the most influence over the current situation in United States was passed in 2006 and is known as UIGEA, which stands for Unlawful Internet Gambling Enforcement Act. This legal document was controversial from the start, and it caused a lot of remarks and complaints (even from the European Commission). But, it is still valid and serves as a barrier to any bank that would accepts financial transactions from a gambling website. It also prevents companies to publicly advertise gambling, but it does not say anything about explicitly banning the American gamblers to try their luck on online locations. Therefore, citizens of United States are free to gamble, but with a rather large obstacle of not being able to use their banks and credit cards.




However, American system allows for states to have their own laws and regulations, and in recent years some of them have been able to make online gambling completely legal on their territory. It all started with Delaware in 2013, and after that Nevada, but a large number of other, slightly liberal, states are trying to make gambling legal and to pick the taxes of this popular entertainment method.

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