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B) Interest earned, however paid, throughout a bond year, must be accrued after the bond year and reported as taxable income for that calendar year in which your bond year ends. You to be able to file a tax return for that specific year a two year period before the bankruptcy. Turn out to be eligible to wipe the debt, you must have filed a taxes for the irs or State debt you want to discharge at least two years before bankruptcy. Thus, regardless of whether the debt is over three years old, an individual are filed the return late and two years has not passed, then cannot get rid of the Government or State tax national debt.