Federal Taxes & Report of No Distribution

[jjsmith]

When we file next week, we're expecting one of the things that will come up, is that the trustee will want to see our 2009 tax return to see if there is a refund. We got a $300 federal refund last year and paid $4K to state. We don't have any taxes taken out of our paychecks, so we used part of savings that we've been spending down prior to BK to pay our estimated taxes for the year. We paid $2K to federal and $4K to state, and I'm not afraid of getting a refund.

But, I've heard that if you file at the end of the year, the trustee wants to see your next years tax returns. And even though the tax amount we paid is very low compared to our income (thanks to our exorbitant losses), I highly expect a trustee to want to see our tax return. Does anyone know if the trustee is waiting to see a tax return, does that delay them recording a report of no distribution? That seems a long time to wait! I'm hoping that if the trustee is only waiting for a tax return that they will issue a report of no distribution with some exception for the tax returns.

I just know we're going to be on pins and needles waiting for whether we're going to be turned into an asset case and the sooner we get that answer, the better!!!

[jribe]

our trustee didn't ask about the 2009 returns. I think they look at how much you usually get back; and if you're expecting one next year

When we file next week, we're expecting one of the things that will come up, is that the trustee will want to see our 2009 tax return to see if there is a refund. We got a $300 federal refund last year and paid $4K to state. We don't have any taxes taken out of our paychecks, so we used part of savings that we've been spending down prior to BK to pay our estimated taxes for the year. We paid $2K to federal and $4K to state, and I'm not afraid of getting a refund.

But, I've heard that if you file at the end of the year, the trustee wants to see your next years tax returns. And even though the tax amount we paid is very low compared to our income (thanks to our exorbitant losses), I highly expect a trustee to want to see our tax return. Does anyone know if the trustee is waiting to see a tax return, does that delay them recording a report of no distribution? That seems a long time to wait! I'm hoping that if the trustee is only waiting for a tax return that they will issue a report of no distribution with some exception for the tax returns.

I just know we're going to be on pins and needles waiting for whether we're going to be turned into an asset case and the sooner we get that answer, the better!!!

[liboton21]

I think trustee only get a percentage of the refund not the whole amount.

[dspii]

They will ask to see prior years tax returns and if they see something of value they will want your 2009 returns. They will not file a report of no distribution unless there will be nothing to distribute...like taxes. The report does not allow exceptions, I don't think.

If they think you will have a refund, they will file an interim report and make you an asset case....don't worry though, it's no big deal, it does not delay your discharge.

Based on what you said, they will look at your prior years taxes and move on to the next issue....