NJ State taxes

[Justpoor]

Hi All. I haven't been on here in a bit since I'm riding out a foreclosure. I live in Florida since 2007 but NJ has given me a Christmas gift. In my mail today they decided to audit my 2006 state return. After penalties and interest they are saying I owe $1k by Jan 15th. I'm going to argue it because I don't believe I owe but knowing how NJ is I will lose. My question...can this be included in a BK? I'm unemployed and this just tops the cake.

[JoeBankrupt33]

The tax return must have been originally due at least three years before you filed for bankruptcy. The 2006 return was due April 16, 2007 (Apr 15 was Sunday). To meet this requirement, you would have to wait until April 16, 2010.

You must have filed a tax return for the debt you wish to discharge at least two years before filing for bankruptcy.

The income tax debt must have been assessed at least 240 days before you file your bankruptcy petition, or must not have been assessed yet. These taxes were assessed when they sent you the bill. So, you need to wait about 8 months from now if you want to get these discharged, assuming that you passed the other requirements.

[Justpoor]

That is quite a complex answer! Thank you so much! I tried to call them today and got a recording saying they were busy and to call back later. So I sent an email and got an automated reponse saying they are busy and will get back to me in 10 working days or later. The money is due the 15th of Jan. I hope I hear back.

I think I stretch this out for another 8 months because the foreclosure hasn't started yet and I was going to put it up for a short sale to buy some time.

Thank you so much for your help Joe.

[DSIG]

you can include it and I would not worry too much about NJ going after you to collect it. They will intentionally let it accrue interest and late fees just to squeeze more. I forgot to file my federal and NJ state tax returns during the tax year that I was in Iraq...so, during the 2005 tax year. If I did not file for bk, I wonder when they were going to tell me that I did not file my returns!! When they got around to it?! And I owed them, too. When you file for bk, at least with the IRS you are required to be current on all your tax return filings. When the IRS received notice of my bk filing since I included them, they made me file my 05 return. NJ did not make me file for the 05 year. Instead, they calculated what they thought I owed and filed it as an unsecure proof of claim with the bk court. My short answer is to let the balance linger if you intend to bankrupt it anyway. NJ will not file an objection with the court--they will just file their proof of claim

[Justpoor]

Thank you DSIG. I will definetely try to put it in. I was kinda hoping to get away without filing BK. The unsecured creditors have seemed to have given up. I was going to do a short sale on the house so that wouldn't be an issue. I'm sure NJ will keep persuing me though. They have treated me like a criminal since I moved out of the state.

[justbroke]

JoeBankrupt is right on the money. (Pun intended.)