In Chapter 13, income taxes can be wiped out if the return was due more than 3 years prior to the filing, and was assessed at least 240 days prior to the filing. In some cases, the tax may be dischargeable even if not assessed prior to the filing.

Income Tax Liability
Under the Internal Revenue Code, as a general rule, forgiveness of indebtedness constitutes income to the debtor. However, there is an exception where the debtor receives a discharge in bankruptcy.

Filing Returns After Bankruptcy
As a general rule, debtors filing bankruptcy continue to complete their own returns and pay their own post-bankruptcy taxes. However, in instances where a bankruptcy trustee is appointed, and assets are liquidated and monies paid to creditors, the trustee may be responsible for the preparation of a tax return. Debtors should therefore consult their own tax professionals about their own particular tax situations.

Liens
A priority tax can also be a secured claim, if the entity has duly recorded a tax lien. If a priority tax claim has secured status as well, then in a Chapter 13 as well as Chapter 11, the claim would be entitled to interest. Also, even if a tax is otherwise non-priority, and therefore dischargeable, the tax entity has the right to enforce its lien rights

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