Bankruptcy Discharge Calculator

Client / Matter (optional)

Appears on the report header (Re: line) and in the file name.

Due dates auto-fill with actual original due dates (weekend and Emancipation Day adjusted; TY2019 and TY2020 use April 15, the date the IRS counts the 3-year rule from (IRM 5.9.17.8), even though filing was postponed to 07/15/2020 and 05/17/2021). Toggle EXT if an extension was filed; the 3-year rule runs from the due date including extensions. A due date on a Saturday, Sunday, or D.C. legal holiday is moved to the next business day under IRC §7503, and the 3-year rule counts from that date (statewide holidays aren’t included). A 2019 or 2020 return filed by the postponed date was on time, and the late-return note treats it that way. Latest Assessment: enter the most recent assessment for the year (an audit adjustment, for example); each assessment needs its own 240 days. Return: mark a year with no return or only an IRS substitute for return, an own return filed after the IRS assessed an SFR, a trust fund tax, or fraud or evasion. A blank filed or assessment date is never treated as passing.

No tolling events. Add prior bankruptcies, confirmed plans, CDP hearings, or offers in compromise, if applicable.

Federal Tax Lien (optional)

Disclaimer: Informational only; not legal advice. This checks the timing rules; the bankruptcy court decides whether a tax is discharged. Additional requirements apply: no fraudulent return and no willful evasion (§523(a)(1)(C)), and trust fund taxes never qualify. An IRS substitute for return (IRC §6020(b)) is never a return (§523(a), unnumbered paragraph); the circuit split concerns the debtor’s own late return (Eleventh Circuit: Mass. Dep’t of Revenue v. Shek, 947 F.3d 770 (2020), and In re Justice, 817 F.3d 738 (2016), applying Beard v. Commissioner, 82 T.C. 766 (1984); the one-day-late rule controls in the 1st, 5th, and 10th Circuits). The IRS doesn’t treat a return received within 7 days after the due date as late (IRM 5.9.17.8). Prior-bankruptcy tolling of the 2-year rule is the IRS’s position (IRM 5.9.17.8), resting on equitable tolling per Young v. United States, 535 U.S. 43 (2002), and varies by circuit; this tool applies it conservatively. Legal dates are strict statutory minimums; file on or after the safe date, and build in a cushion. Penalties discharge with the tax, or on their own if the event behind the penalty was more than 3 years before the petition (11 U.S.C. § 523(a)(7); IRM 5.9.17.8). Interest follows the tax: interest on a nondischargeable tax isn't discharged (IRM 5.9.17.8). A pre-petition NFTL survives discharge as to pre-petition property.