The filing of a bankruptcy petition will not necessarily relieve the debtor of his responsibility to pay delinquent federal and state income or property  taxes.   Income Taxes—are not dischargeable if they are due within three years and sometimes four years prior to the filing of the petition.  In other words, all income taxes (and property taxes) due within three years before filing bankruptcy are collectible by the taxing authority (ie., IRS).   For example, if the debtor files for bankruptcy in 2009, all taxes owed since 2006 must be paid.   Income Taxes due more than three years in the past are dischargeable in bankruptcy.  One exception regarding older income taxes exists where the IRS has made an “assessment” of the taxes due within 240 days of the filing of the petition.  There are other exceptions.

Payroll (Business) Taxes.   Managers in charge of a company’s payroll are responsible for withholding payroll taxes of the employees.  The portion paid by the employees are considered to have been paid in trust and must be repaid by the managers in charge.  These taxes are never dischargeable. Bankruptcy will afford no relief from this responsibility.