Tax filing

[IamOld]

It looks like will be filing Ch 7 around May 1st or so...(need to let "old job" income fall off - sigh - working for 50% of old job).

Anyway, I reaad at the IRS that:

that:" 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."

So my question is this - of course 2009 fed tax return was filed; I will have 2010 DONE (can give copy) but will file extension that will match the unfiled copy exactly. Is that enough to file the Ch 7? Will that be enough for the Trustee? Why the extension? Because I will owe quite a bit, and cannot pay right now (yes I know interest, etc. but at least that gives you some time).

So is this ok?

Will they want it filed with the 341 hearing?

And/or before they discharge (God willing!) There is NO way that he (she) can think I'm getting a refund, ALL income from W2 sources only.

Any advice please?????


THANK YOU!!!!!!!!!!!!!!!!!!!!!!!

[daylate]

As i read what you wrote, you will be okay doing what you said you are going to do. You will provide 2009 and you will file 2010 albeit with an extension. Only problem would be if you didn't file the 2010 actual return by the extension date.

[IamOld]

Thanks!!! I hope so...I'm already doing nothing else but living this thing day in and day out - I seriously spending all my time thinking about his....

[tcreegan]

Hi Iamold,

I think I read a case where the BK court had to be content w/ a tax return filed w/ extensions. At any rate, the key words are "if requested" I would think any reasonable trustee would be OK w/ your plan. Worst case scenario, they hold your case open until you do actually file.

Hang in there!

Tom in Colo

[IamOld]

tcreegan - thanks!!!!!!!!!! DId they ask you for more tax returns?

[tcreegan]

Hi Iamold,

We were below-media, no asset, the kinda case the trustee gets a whopping $60 for...glanced at last years tax return, that was it.

I was looking for something else and ran across the Bk code that says you can file for a tax return extension: 11 § 521(j)(1)

...every now and then a blind bird finds a worm

Tom in Colo

[IamOld]

Hi Iamold,

We were below-media, no asset, the kinda case the trustee gets a whopping $60 for...glanced at last years tax return, that was it.

I was looking for something else and ran across the Bk code that says you can file for a tax return extension: 11 § 521(j)(1)

...every now and then a blind bird finds a worm

Tom in Colo

Thanks! Problem is if he files after April 15th would they want 2010 COMPLETED taxes not just the extension (which will clearly show I owe)???

[daylate]

I think the extension works. On it you have to estimate your tax liability and pay what is due to avoid penalty. 2009 would still be your most recently filed. From what you originally wrote the only time I see a problem is if you don't file by the extension date.

Just another thought-why don't you just go ahead and file if it is done? There is no difference if you don't pay what you owe by 4/15(18 this year-I think the 15th is holiday). Just because you file an extension doesn't relieve you of late pay penalties or interest.

[IamOld]

THANKS! But I usually save up to pay by October/November OR this year may have to borrow from in-laws...but right now, I just don't have the $$ and have a payment plan with IRS already.