If I file Jan 3 2011 will I have to file 2010's taxes right away?

[mcjcbk]

My BK Court is closed on New Year's Eve. Paralegal may not be able to get docs to me til Friday so i'll have to file on Monday Jan 3rd. Think I will be required to file 2010's taxes to bring a t 341 meeting?

[free2breathe]

Whether you will have to file by then or not, you will eventually have to provide that tax return to the trustee. They will want to see it. If you are due a refund at the time of filing your bankruptcy (whether your taxes have actually been filed or not) that refund will be property of the bankruptcy estate unless you have exemptions available to protect it. Most will tell you to file taxes first, spend the refund on allowable expenses (no assets, just things like pre-paying car insurance, rent, food supplies, etc.) and then file for bankruptcy once it's spent down. Your attorney should be able to advise you as to the best timing of filing your bk.


Edited to add: even if you file by December 31, the 2010 tax refund is still an issue as far as being an asset. Again, run it by your attorney.

[Nicollette]

When I first retained my attorney back in 07, he had asked me if I've filed my taxes yet. Of course, I had already filed them and received my refund back, but he had told me, if I hadn't filed yet, the trustee would be looking for them, and this was around Feb of 07 when I retained him...

[mcjcbk]

Thanks. Looks like I'll be able to file today. I will get the taxes prepared, however I'm not concerned about Trustee taking refund cause we will actually owe...don't know what a refund looks like since we've been in business for the past 10 years.

[tcreegan]

Hi mcjcbk,

From all my reading, no fast-filing required, normal April 15th deadline. In fact extensions are allowed albeit w/ a set of rules.

The trustee might be more interested in your profit/loss reports from the business anyhow.

If the trustee really wants to see 2010, they can hold the case open until you file and get them a copy.

Hope your trustee is reasonable and everything goes smoothly for you!

Tom in Colo