Filing late tax returns before bk [Archive]

bkbkbk

12-01-2007, 04:44 AM

I found some info here:

http://www.irs.gov/newsroom/article/0,,id=150241,00.html

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New Bankruptcy Law Changes Debtors’ Responsibilities

FS-2005-18, November 2005

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) amends the U.S. Bankruptcy Code by adding new responsibilities for debtors.

In general, the new law requires that debtors comply with their tax-filing responsibilities, make available previously-filed tax returns, in many cases, and seek credit counseling services. Most BAPCPA provisions apply to cases filed on or after Oct. 17, 2005.

Tax Returns Must be Filed

Under the new law, if debtors fail to file a return that becomes due after the date of their bankruptcy petition, or fail to file an extension, the IRS may request the Court to order a conversion (change from Chapter 7 to Chapter 11 or from Chapter 11 to Chapter 13, for example) or dismissal of the case. Conversion or dismissal may also be ordered if a Chapter 11 debtor fails to timely pay tax obligations owed after the date of the bankruptcy petition.

In order to have their plan confirmed, Chapter 13 debtors must also file all tax returns with the IRS for the four-year period before the bankruptcy petition. The debtor must establish filing by the first meeting of creditors.

Seven days before the first meeting of creditors, debtors must provide trustees a copy of their most recently filed federal tax return or a transcript of the return. Similarly, copies of amendments to such returns, and any past due returns filed while the case is pending, must also be filed with the court if requested. The returns or transcripts must be provided to the court at the same time they are filed with the IRS. If the returns or transcripts are not filed, a Chapter 7 discharge will not be granted, or a Chapter 11 or 13 plan will not be confirmed. In addition, debtors must also provide a copy of the tax return or transcript to requesting creditors.

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	Bankruptcy Forum > Before the Discharge > Chapter 7 > Filing late tax returns before bk PDA Filing late tax returns before bk bkbkbk 11-30-2007, 11:16 AM I am about to mail in my very late 2005 tax returns. I will mail in my late 2006 tax returns within a week, also. I will probably file for ch7 bk in Dec or Jan if I can. Will there be a problem with my tax returns? HHM 11-30-2007, 11:19 AM The late tax returns should not an issue in your BK. All BK cares about is that the returns are filed. But, if you owe tax, that tax will not be discharged in the BK. rilbrianne 11-30-2007, 11:44 AM Should they use them up before filing? I'm asking because the trustee may see it as something he/she can take...?? bkbkbk 11-30-2007, 09:55 PM Well, I only get a $40 or so refund for 2005. For 2006, I doubt I will get much at all, if anything. Can I get my tax listings (or whatever they're called) in time or does the IRS take a long time to process? Or are copies of the returns themselves sufficient for the bk lawyer, trustee, court? bkbkbk 12-01-2007, 04:44 AM I found some info here: http://www.irs.gov/newsroom/article/0,,id=150241,00.html --------------------------- New Bankruptcy Law Changes Debtors’ Responsibilities FS-2005-18, November 2005 The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) amends the U.S. Bankruptcy Code by adding new responsibilities for debtors. In general, the new law requires that debtors comply with their tax-filing responsibilities, make available previously-filed tax returns, in many cases, and seek credit counseling services. Most BAPCPA provisions apply to cases filed on or after Oct. 17, 2005. Tax Returns Must be Filed Under the new law, if debtors fail to file a return that becomes due after the date of their bankruptcy petition, or fail to file an extension, the IRS may request the Court to order a conversion (change from Chapter 7 to Chapter 11 or from Chapter 11 to Chapter 13, for example) or dismissal of the case. Conversion or dismissal may also be ordered if a Chapter 11 debtor fails to timely pay tax obligations owed after the date of the bankruptcy petition. In order to have their plan confirmed, Chapter 13 debtors must also file all tax returns with the IRS for the four-year period before the bankruptcy petition. The debtor must establish filing by the first meeting of creditors. Seven days before the first meeting of creditors, debtors must provide trustees a copy of their most recently filed federal tax return or a transcript of the return. Similarly, copies of amendments to such returns, and any past due returns filed while the case is pending, must also be filed with the court if requested. The returns or transcripts must be provided to the court at the same time they are filed with the IRS. If the returns or transcripts are not filed, a Chapter 7 discharge will not be granted, or a Chapter 11 or 13 plan will not be confirmed. In addition, debtors must also provide a copy of the tax return or transcript to requesting creditors. ....