Chapter 7 Income Tax Returns Only have Social Security and disability income no/file

[zippytex]

Hi, I receive 937.00 Social Security Disability and 86.15 private insurance disability per month. I haven't filed an income tax return in over 10 years, because I do not get enough to pay income tax. I do have a w2 for the 86.15 from the insurance company and a yearly statement from SS stating how much I have received. Will this be enough for the trustee? I live in Idaho. I am 63 and just got your recommened chapter 7 book in the mail today. I cannot afford 1200. to pay an attorney and will file pro se. I just checked the IRS site and found that I do not have to declare the social security income just the insurance company income. That is way below the 8,200. or below amount that makes filing necessry. So, I guess if the IRS doesn't require me to file a tax return, the trustee cannot make me accountable to have one????? Thank you.

[FilingOnMyOwn]

Yeah you're probably ok. Social security payments are not income that is taxed.

[lrprn]

Yeah you're probably ok. Social security payments are not income that is taxed.

And best of all, the trustee can't take any part of your social security benefits to pay creditors

If there's an acceptable reason for not having tax returns (and in this case, you certainly have one), then you can't produce what you don't have. Just bring along whatever documentation is needed to show any other income you have (like the insurance you mentioned). Also, although your social security benefits can't be touched, bring a statement along to your 341 documenting the income so the trustee can see how you are paying your basic housing and living expenses. Good luck - keep us posted on how things are going and remember we're here for questions or support when you need it.

[razorguns]

just explain everything and u should be okay. i also had no income but disability, and 1 tax return. All was accepted with no q's asked.

r

[SinkingFast]

We had the same situation with my Mom living with us. Our attny wanted a copy of her most recent income tax return to keep on file with our other docs.

Mom hasn't filed in over 10 years as she's been on SSI Widow's benefit since she turned 62. Mom "retired" due to a bad hip which she wound up having replaced 6-8 years later. I explained that to the attny and he said, "OK."

You should be fine with the documentation you have and the explanation why you have not filed.

[Interlaw]

Hi, I receive 937.00 Social Security Disability and 86.15 private insurance disability per month. I haven't filed an income tax return in over 10 years, because I do not get enough to pay income tax. I do have a w2 for the 86.15 from the insurance company and a yearly statement from SS stating how much I have received. Will this be enough for the trustee? I live in Idaho. I am 63 and just got your recommened chapter 7 book in the mail today. I cannot afford 1200. to pay an attorney and will file pro se. I just checked the IRS site and found that I do not have to declare the social security income just the insurance company income. That is way below the 8,200. or below amount that makes filing necessry. So, I guess if the IRS doesn't require me to file a tax return, the trustee cannot make me accountable to have one????? Thank you.

You are required to provide the Court or the Trustee your most recently filed tax return (or an explanation under oath as to why it cannot be provided) or your case will be dismissed. The obligation to file or the taxability of your income is an entirely separate issue from your obligations under the Bankruptcy Code.

Note that in a Chapter 13 case, the Trustee can certainly require you to file your tax returns, even if there is no tax due and no penalty from the IRS for your failure to file.

Brett Weiss
Maryland, DC and Federal bars
Member, National Association of Consumer Bankruptcy Attorneys

--> Read our Bankruptcy FAQ at bankruptcy/FAQ/br_faq.htm[url]

************************************************** ***************
The Small Print: This response is for discussion purposes only.
It isn't meant to be legal advice and you shouldn't treat it as
such. If you want legal advice, speak with a local lawyer
familiar with your state's laws who can review *all* of the
facts and the law applicable to your situation.
************************************************** ***************

[SinkingFast]

You are required to provide the Court or the Trustee your most recently filed tax return (or an explanation under oath as to why it cannot be provided) or your case will be dismissed. The obligation to file or the taxability of your income is an entirely separate issue from your obligations under the Bankruptcy Code.

Note that in a Chapter 13 case, the Trustee can certainly require you to file your tax returns, even if there is no tax due and no penalty from the IRS for your failure to file.

Brett Weiss
[email protected]

https://www.brettweiss.com/bankruptcy

Maryland, DC and Federal bars
Member, National Association of Consumer Bankruptcy Attorneys

--> Read our Bankruptcy FAQ at www.brettweiss.com/bankruptcy/FAQ/br_faq.htmwww.brettweiss.com/faq/br_faq.htm.

************************************************** ***************
The Small Print: This response is for discussion purposes only.
It isn't meant to be legal advice and you shouldn't treat it as
such. If you want legal advice, speak with a local lawyer
familiar with your state's laws who can review *all* of the
facts and the law applicable to your situation.
************************************************** ***************

This is very interesting stuff, Brett!!

Could we discuss this in a bit more detail??!!

I am curious,............ The IRS Standards are the basis for much of the BK Code. Yet, it seems that whenever the Court wishes, they defer from the IRS Standards.

As in this case. People on SSI or SSDI with other income (interest on investments, retirement, etc) under $X/year are not required to file income taxes. They do not meet the IRS Definition of a Filer.

Yet, a BK Court can come back and say "You violated the rules by not providing your income tax returns." when the Debtor/Filer was not, by IRS definition an Income Tax Filer in the first place.

[Interlaw]

This is very interesting stuff, Brett!!

Could we discuss this in a bit more detail??!!

I am curious,............ The IRS Standards are the basis for much of the BK Code. Yet, it seems that whenever the Court wishes, they defer from the IRS Standards.

As in this case. People on SSI or SSDI with other income (interest on investments, retirement, etc) under $X/year are not required to file income taxes. They do not meet the IRS Definition of a Filer.

Yet, a BK Court can come back and say "You violated the rules by not providing your income tax returns." when the Debtor/Filer was not, by IRS definition an Income Tax Filer in the first place.

You are absolutely correct in all you say.

When a client hasn't filed in years (beacause they don't have to), I file an Affidavit explaning this instead of the return. The Court accepts it without problem.

Brett Weiss
[
Maryland, DC and Federal bars
Member, National Association of Consumer Bankruptcy Attorneys

--> Read our Bankruptcy FAQ at [bankruptcy/FAQ/br_faq.htm[/url][url]

************************************************** ***************
The Small Print: This response is for discussion purposes only.
It isn't meant to be legal advice and you shouldn't treat it as
such. If you want legal advice, speak with a local lawyer
familiar with your state's laws who can review *all* of the
facts and the law applicable to your situation.
************************************************** ***************

[razorguns]

When a client hasn't filed in years (beacause they don't have to), I file an Affidavit explaning this instead of the return. The Court accepts it without problem.

this is the correct answer to her question.

r