Yes, bankruptcy can discharge certain older tax debts, but there are specific conditions that must be met for this to happen. Generally, these conditions apply to federal income tax debts:

Conditions for Discharging Tax Debts in Bankruptcy:

1. The Three-Year Rule: The tax return for the debt must have been due at least three years before you filed for bankruptcy. This includes any extensions granted by the IRS.
2. The Two-Year Rule: You must have filed the tax return at least two years before filing for bankruptcy. The return must be filed on time, and late returns might not qualify for discharge.
3. The 240-Day Rule: The IRS must have assessed the tax debt at least 240 days before you filed for bankruptcy. If the IRS suspended collection activity during this time, the 240-day period may be extended.
4. No Fraud or Willful Evasion: The tax debt must not be due to fraudulent activity or willful tax evasion. If you engaged in any fraudulent behavior related to the tax debt, it cannot be discharged.
5. Income Taxes Only: The tax debt must be for income taxes. Other types of taxes, such as payroll taxes or fraud penalties, typically cannot be discharged in bankruptcy.

Types of Bankruptcy:

• Chapter 7 Bankruptcy: If these conditions are met, a Chapter 7 bankruptcy can discharge eligible tax debts entirely.
• Chapter 13 Bankruptcy: In a Chapter 13 bankruptcy, the tax debts may be included in the repayment plan and paid off over three to five years. Some tax debts may still be discharged at the end of the repayment period if the above conditions are met.

Exceptions:

Certain tax liens may survive bankruptcy, meaning that even if the debt is discharged, the lien on your property may remain. Additionally, more recent tax debts or those that do not meet the above criteria are unlikely to be discharged.

If you’re considering bankruptcy to address tax debts, consulting with a bankruptcy attorney who specializes in tax issues would be beneficial.