Recent Taxes
Taxes first due within three years of the bankruptcy
and taxes assessed within 240 days of the bankruptcy, or which are
unassessed but assessable when the case is filed, are priority claims
which are not subject to discharge.
Priority taxes will survive a Chapter 7 discharge to
the extent that the trustee does not have money in the estate to pay
them.
In Chapter 13, such taxes must be paid in full through
the plan; penalties associated with those taxes, however, can be treated
as a non priority claim and paid a fraction along with other unsecured
claims. In Chapter 13, the tax does not continue to incur interest
during the case; if the plan is completed, no post filing interest is
due.
