Want to file but im gona owe 08 tax

[brokejim]

I want to file for bk but i didnt file 08 taxes yet and i think im gona owe around 10000 will i still be able to file for bk (dont have no money for tax )and what if i borrowed from family part of tax money say at least 3 or 4k could i get in trouble

[JoeBankrupt33]

If you borrow money from family before you file, then you would need to list them on the bankruptcy. I wouldn't do this. If I were in your shoes, I think I would file my taxes, then list the debt in the bankruptcy. Ofcourse, you won't be able to discharge this debt, but they will be a priority debt and will be the first to be paid (assuming that anyone is paid).

After you file bankruptcy, then you can borrow money from family if you want to.

If you wanted to get money now from your family, and they just gave you the money, then that would count as income on your means test on line 10, and it might put you over median. But, I would worry about preferential payments before the BK. Better to be safe in my oppinion.

[OhioFiler]

I'm not sure how someone on the verge of insolvency can owe $10,000 in underpaid income taxes in just one year. I would suggest revisiting the 1040 form and see if you've missed a few deductions or overstated your income.

I'd reduce that tax liability as much as possible before filing. What are the odds the IRS will audit you anyway? Not very high.

[StartingOver08]

You can file your taxes and make arrangements directly with the IRS for payments. Once you file BK the IRS will not persue collection until you are discharged and if you file a 13, as stated before, they are one of the first ones to get paid because they are a priority creditor.

[momxx5]

We owed last year and are going to owe again this year.
We have5 children but DH's previous income wiped out any child tax credit.

DH has taken a huge pay cut. That is why I worry about the means test. Looking at tax returns be should be quite well off, however now his income has dropped more than $600/month.

[SobStory]

Ohio Filer, There are a lot of ways you can owe that kind of money while on verge of BK. e.g. I ransacked my IRA to stay current until it was all gone. Now I'm broke and I'm going to owe taxes and penalties. It sucks.

[StartingOver08]

Thank you SobStory! I thought I was the only one here that had the misfortune to owe the IRS!

[brokejim]

Self employed and they are gona see my tax return and bank statements and i scratched a couple of grand off the total (if they ask about 2 grand that is easier to believe than say 10 or 15)there only so much deductions i can make with out throwing up flags and i didnt pay any quarterlys a couple years ago i owed about 20k on gross of 68k

[OhioFiler]

Ohio Filer, There are a lot of ways you can owe that kind of money while on verge of BK. e.g. I ransacked my IRA to stay current until it was all gone. Now I'm broke and I'm going to owe taxes and penalties. It sucks.

That definitely creates a nasty liability.