Does trustee always get IRS tax transcripts going back 4 yrs ?

[OHBOY]

Attorney states to submit 3 yrs. of tax staments. Also states (in papers) to ask case worker on how to get IRS transcripts FOR LAST 4 YEARS, IF requested to do so. (IRS site gives full instructions on how to do that...).

Question (because inquiring minds want to know...lol):

IS IT NORMAL FOR TRUSTEE (or case worker) TO REQUEST TAX TRANSCRIPTS GOING BACK 4 YEARS ?

[DaisysMom]

As far as I know...mine didn't. He looked over my last two years that were provided '09 and '10 and told me he didn't even need the 2011 filing. Guess he could see from what I had given him that I wasn't making much. But that was just my experience.

As for others, I would guess only if there was a reason to want to check back on the older ones. Everyone who files has different circumstances and each trustee is unique in how they determine what they need (within the law of course.) I have read on here where some trustees want everything and then ask for more, and then on the other hand, like the one I was lucky enough to get..he didn't want anything extra. In fact, he didn't even want my latest bank statements or pay-stubs. I couldn't believe it.

So I guess it all depends on who your trustee is. And most attorneys who have done this for a while, know the quirks of the particular trustees and can give you some idea what they will want.

Just my 2 cents.

And BTW...I'm headed for discharge around June 6th. Fingers crossed!!! Woot

DM

[ValleYum]

We turned in the taxes from 2 years prior to filing (2008, 2009). We did not have to sign the form for tax transcripts but I had e-filed and had the 'electronic postmark' on the returns I turned in. We filed in December and the pay-stubs pretty much gave the Trustee our income for 2010. We also had no tax debt when filing.

As always, your mileage may vary - trust that your local BK attorney knows what your Trustee wants. Good luck!!

To: Daisy'sMom

YAY!! Not long at ALL!! Can't wait to see your hamsters dance for you!!

[frogger]

It's not unusual. I had to supply 4 years.

No big deal if you have nothing to hide. There's gold in those depreciation schedules............

[HHM]

No that big of an issue. 4 years is a bit excessive, but not unreasonable. This is one of those things that varies by district. Strictly speaking, the code only requires you to submit the most recent filed return.

But for the trustee to properly carry out his duties and conduct his due diligence, they usually as for 2 or 3 years. 4 years is pushing it in my opinion, but not inherently unreasonable. The BK code requires the debtor to comply with all "reasonable" requests of the trustee

Sometimes, I do wonder why they bother. But tax returns are a way to trip up the debtor. Tax returns are primarily used to see if things are consistent and sometimes contain asset info that the debtor "forgot." e.g. that $50,000 worth of a Mutual Fund that had a minor capital gain, or the depreciation you took on that vacation rental you own in Canada. The tax returns are really more important for trustees in debtors with businesses, as the trustee can get at loss-carry forward. etc.