Can I File For Bankruptcy If I Haven T Filed Taxes ?
Filing for taxes is completely different from Bankruptcy. One has to understand what they can do when they file for bankruptcy before making assumptions. You are liable to pay taxes as long as you earn a fixed income. You are liable to pay taxes even if you do not have a fixed income but your income per annum increases a certain limit set by the Internal Revenue Service. |
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Taxes are ordered by the government it is something you have to pay the government for maintaining infrastructure, providing community benefits like security in the form of police and water supply and so on. Taxes are completely paid for a different purpose which is essential to run your life in normal society. Everybody has to contribute to taxes so that the government receives the necessary funds to carry out responsibilities to maintain a city or a county.
A person is allowed to file bankruptcy when they do not have a source of income and also have no savings that they can fall back upon. The court allows people who have lost their jobs and have no source of income to file for bankruptcy in most cases. Also, in case of a business, bankruptcy is allowed only when it is making severe losses and cannot overcome even if they continue running their business for a while.
There are several new schemes authorized by the government in view of the recent recession that gives them tax breaks and alternative adjustments. It is best to consult a proper tax lawyer to know what those adjustments are and then ct accordingly. In the mean time, if you owe any taxes on the income that you earned, then you are liable to pay even if you file for bankruptcy. Government loans and taxes are given the first priority to be cleared when you file for bankruptcy.
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