Department of Revenue Bankruptcy Unit

Overview

Bankruptcy helps people who can no longer pay their debts get a fresh start. This may involve:

• Liquidating assets to pay debts, or
• Creating a repayment plan

Bankruptcy laws also protect financially troubled businesses.

• Learn more about bankruptcy on the US Courts Bankruptcy page.

Bankruptcy and Tax Debt

• After you declare bankruptcy, you may still owe a tax debt. When we receive notice of your bankruptcy closure from the United States Bankruptcy Court, we will send you a letter with the amount of taxes due including penalties and interest.
• You will have 30 days from the date on your letter to pay this amount or to request a payment plan.

Bankruptcy and Tax Returns

After declaring bankruptcy, you are still required to file tax returns, and your bankruptcy can be impacted for non-filed returns before and after you file for bankruptcy.

Mailing a Bankruptcy Return

If our Bankruptcy Unit has requested a copy of your return, please send it to:

Bankruptcy and Tax Refunds

If you become eligible for an income tax refund during your bankruptcy, there are two things to keep in mind:

• Only paper refund checks are issued during the time your bankruptcy is open. No electronic deposits can be made.
• Most tax debts are not discharged by your bankruptcy and may still be collected as part of a refund offset.

Learn more about types of bankruptcy and debts that may remain on the U.S. Courts Bankruptcy page.