WIPE OUT IRS DEBT
          
          
               Many people are under the mistaken impression that
          debts to the Internal Revenue Service cannot be wiped
          out through bankruptcy.  This was true before 1966, but
          in that year the law changed and Congress enabled
          unfortunate taxpayers to rid themselves forever of
          unpayable debt and thus get a new financial start in
          life.
               In order to use this law, certain rules must be
          followed very carefully:
               1)  An income tax return must be filed.
               2)  The return must be filed at least three years
          before the bankruptcy petition is filed.
               3)  At least two years must pass before this
          petition is filed if the tax return was filed late. 
          The three-year rule cannot be shortened to two years by
          filing the return one day late.  You must comply with
          both the three- and two-year rules.
               4)  You must wait 240 days from the date the taxes
          are assessed before filing for bankruptcy; these 240
          days allow the IRS time to try to collect any taxes it
          says are due.
               5)  Fraud must not be involved.
               Even if no returns have been filed, there is still
          a solution through bankruptcy, for tax debts can be
          discharged under Chapter 13 even when no return is
          filed, the return is filed late, or even if fraud is
          involved, so long as the debtor acts in good faith in
          making the bankruptcy petition.  Chapter 13 is the
          "wage-earner" plan, which allows installment payments
          to be made for 3 years, after which all remaining debts
          are discharged.