When can one discharge delinquent taxes in bankruptcy?

The current bankruptcy law is very restrictive and is a “needs-based” law. Some taxes will be dischargeable and some will not. Because it is a “needs-based” law fewer consumers will be able to use Chapter 7 bankruptcy as a quick fix for extinguishing credit card bills and other unsecured debts.  Of course, this also means that they cannot extinguish delinquent taxes because they will not be able to file for protection.  The overriding purpose of the law is to reduce the attractiveness of bankruptcy and to restore its historic reputation as an option of last resort.  Even if one qualifies for a Chapter 7 discharge, any taxes three years old or newer will not be dischargeable.  Even older taxes are subject to their own restrictive rules, but generally, if the tax was assessed more than three years before you file, then it will be dischargeable. Payroll taxes are not dischargeable.