I owe about $60,000 in back taxes, can I file bankruptcy?

You don't get to pick and choose. You file for bankruptcy, and with you goes your debts and assets. Whether the taxes are dischargeable requires more details.

Sure you can file bankruptcy. However, you may or may not be able to discharge the taxes in that bankruptcy case. The age of the taxes, when and if you filed the tax return, when an additional assessment was made by the IRS, if that happened and other factors come into play. Your comment about only wanting to file on the taxes and the medical bills needs addressing. Bankruptcy law requires full disclosure. Thus, you have to list all debt, not just the debt you want to discharge. However, you can reaffirm debt such as a house mortgage and an auto loan, which means you agree to continue to pay these debts and they will not be discharged. Discharging taxes is even more complex than a normal consumer bankruptcy. You need to contact an experienced bankruptcy attorney in your area that understand the factors involved in discharging taxes. A good way to find that attorney is to use the "Find a Lawyer" link at the top of this page.

You must list all of your assets and liabilities, and should be aware that taxes are commonly not dischargeable, after all, who makes the rules? See an attorney, this will take real real skills and knowledge if it is possible at all.

As the others have pointed out, you don't get to pick and choose which creditors you include in a bankruptcy case, although you can voluntarily repay anyone you want after your case is over. As for whether you can file bankruptcy, that depends on a number of factors including your income, expenses, assets and debts. The only way to know for sure is to have a consultation with an experienced bankruptcy attorney in your area. As for the taxes, if you're asking whether or not they are dischargeable, there's no way to answer that without seeing actual transcripts from the taxing agencies and doing a statutory analysis. The basic framework for dischargeability can be seen in the link below, but there are lots of exceptions and you need a bankruptcy attorney who has expertise in tax discharge analysis to assist you. Good luck!

The rules on discharging tax debt in bankruptcy are relatively complex. Assuming we are talking about income tax debt, the major consideration is how old is the debt - what tax year is the debt from, when was it assessed, when did you file the return for the tax year in question etc. Bankruptcy requires you to list all of your debts. It is a common misconception that you get to choose what debts you want to "file on." If you're worried about keeping a secured debt like a car loan or a home mortgage in order to keep the car/house, that is certainly possible but does depend on some particulars as well. Most consumer bankruptcy attorneys in the area offer completely free consultations. Call one of us to discuss your situation in more detail to see what bankruptcy can and can't do for you.

You may want to consider an Offer in Compromise with the IRS as an alternative to attempting to have the debt discharged in bankruptcy.

It depends when the tax liabilities were assessed. You should review your options with a tax attorney first. If bankruptcy really is you best option, then the tax attorney will tell you. A lot of tax attorneys also do bankruptcy but very few bankruptcy attorneys do tax law. When I get a case that should go bankruptcy, I refer it out.

If you only want to file bankruptcy to discharge tax debt, then you may want to request an Offer in Compromise (as stated above). But keep in mind that the IRS will not process (review) your Offer if a bankruptcy is pending. You have to pick your remedy (Offer or bankruptcy), but you can't do both at the same time. On the upside, once an Offer is processed the IRS will stop collection action. On the downside both an Offer and bankruptcy stay the 10 year statute of limitations on collection. You need to consider this before doing either.

The IRS can generally attempt to collect taxes for up to 10 years from the date they were assessed. However, the time limit can be temporarily suspended or extended in certain circumstances as Mr. DePerno notes. If you are close to the end of the 10 year period where the IRS will have to stop collection activities, you may want to carefully evaluate your situation before doing anything. Regarding an offer in compromise (OIC), the IRS has a public online tool that allows one to input information to see if they may be eligible. The tool is only a guide and is called "Offer In Compromise Pre-Qualifier" and is at http://irs.treasury.gov/oic_pre_qualifier/. Also, the IRS has installment payment plans available to qualifying taxpayers. Sometimes the IRS will set a low monthly payment amount if the taxpayer shows very little in the way of assets or income. For OICs and installment payment plans, you should be aware that the IRS can require detailed financial information (similar to applying for a large loan) be disclosed during the application process. It is advisable to have qualified attorneys help you evaluate your options after they learn all of your situation's particulars. As Ms. Erdmann suggests, there would be value reviewing your matter with a tax attorney and then checking with a bankruptcy attorney.