No tax returns, but didn't need to file

[randian]

Every resource I've seen says you must file the last 2 years of tax returns with your petition or the BK will be kicked out for being incomplete. I didn't file any tax returns because my income was less than the threshold required for filing according to the instructions for form 1040. Since I did not then and do not now owe any tax, non-discharge is not an issue. Can I file a statement with the petition laying out these facts in lieu of 1040s, or must I file zero-income 1040X returns for the missing years prior to petition?

I know that tax returns must be filed during the bankruptcy period. Since I will likely also be under the threshold this year, must I file a zero-income 1040 or can I not file since I wouldn't have to normally?

[dumpinmydebt]

Not really sure on this one. But here is what happened in my district.

There was a one debtor there that had a similar situation. I was listening to his 341. The Trustee simply stated that since the debtor did not have sufficient income to file, that he was aware there was no tax return for the previous year (we are only required to file the previous year). He then asked the debtor how much he anticipated to make in 2010. The amount he stated was on the threshold of whether or not he would have to file, so the Trustee advised him that his case would remain open until he sent a copy of his 2010 tax return, or obviously proof that he did not need to file.

[randian]

There was a one debtor there that had a similar situation. I was listening to his 341. The Trustee simply stated that since the debtor did not have sufficient income to file, that he was aware there was no tax return for the previous year (we are only required to file the previous year).

So as you understand it, the Trustee accepted the debtor's explanation for the missing 1040? I wonder if this is a Trustee-specific thing. That is, wouldn't an inattentive or lazy Trustee be equally likely to preemptively throw out the filing, long before the process gets to a 341, for being incomplete without bothering to inquire as to why the 1040 is missing?

I wonder how one proves you don't need to file. I can certainly assert I have no obligation to file and file an affidavit attesting to same. That is not proof as the word is usually used.

[missjean]

My husband and I are claimed as dependents on our son's tax returns. The Trustee simply asked us for an affidavit (notarized and signed by both of us) indicating why we had not filed a return. Check with your Trustee; I called her office the day after we filed and she told me what to do. Good luck!

[randian]

My husband and I are claimed as dependents on our son's tax returns. The Trustee simply asked us for an affidavit (notarized and signed by both of us) indicating why we had not filed a return. Check with your Trustee; I called her office the day after we filed and she told me what to do. Good luck!

Ok, that works. Thanks! Perhaps I should preemptively add such an affidavit to my original filing?

[tobee43]

My husband and I are claimed as dependents on our son's tax returns. The Trustee simply asked us for an affidavit (notarized and signed by both of us) indicating why we had not filed a return. Check with your Trustee; I called her office the day after we filed and she told me what to do. Good luck!

i think this answer is correct....and as missjean has experienced this first hand, at least it worked in their district.

i would research it one step further and either call an atty for a FREE consult, or the court itself and ask if you were to file pro se and had no tax returns due to lack of income level, they would advise you what exactly that court requires you to have and or need to file in that state, district etc.

[justbroke]

Since tax returns are necessary under 11 USC 521 (Duties of Debtor), I would file a sworn (and notarized) statement with the court that you were not required by law to file tax returns for the tax years XXXX, XXXX, XXXX. This will ensure that the Trustee doesnt' move to dismiss for non-compliance.

My practice is that where the code and rules require a debtor to document or do something and where the debtor is not required by law to document or do that something, file a sworn (notarized) statement with the court that the debtor is not subject to that "something" or required to document something.

(Note: I think it's in 11 USC 521, but it's somewhere in the Duties of Debtor.)

[dumpinmydebt]

So as you understand it, the Trustee accepted the debtor's explanation for the missing 1040? I wonder if this is a Trustee-specific thing. That is, wouldn't an inattentive or lazy Trustee be equally likely to preemptively throw out the filing, long before the process gets to a 341, for being incomplete without bothering to inquire as to why the 1040 is missing?

I wonder how one proves you don't need to file. I can certainly assert I have no obligation to file and file an affidavit attesting to same. That is not proof as the word is usually used.

I wouldn't call our Trustee lazy by no means. He requested our tax returns and bank statements be sent and received by him 1 week prior to the 341. He reviewed it all before we met. I would assume something was communicated by this particulars debtor and the Trustee before the 341 because the Trustee is the one who mentioned that he understood there were no previous tax returns because of the income. As far as how that is done, I am not sure. This may be something you can ask your Trustee about.

I think as jb stated, a sworn statement may be a good idea. I would provide that before your 341 that way if the Trustee has questions, he can contact you about it before you meet.

[randian]

I wouldn't call our Trustee lazy by no means.

I didn't intend to call your Trustee lazy. I was speaking of a hypothetical Trustee who sees a filing that didn't have a 1040.

I think as jb stated, a sworn statement may be a good idea.

Is a sworn statement different than a notarized one?

[justbroke]

Is a sworn statement different than a notarized one?

Sworn is notarized and contains a declaration that it is "sworn" -- before the Notary -- and that you weren't coerced or paid to make the statement. It's basically a "under penalty of perjury" declaration.

[tobee43]

Sworn is notarized and contains a declaration that it is "sworn" -- before the Notary -- and that you weren't coerced or paid to make the statement. It's basically a "under penalty of perjury" declaration.

and i would most certainly agree that that would suffice in any bk court...

when thinking (on occasion) logically, how many people are there, whom actually file bankruptcy, whom have attempted or have, had to hold off for a year of two without wages to report...this situation may happen more times than we may think.

i'm with jb on this one... a sworn notarized affidavit should work...and if not, i'm certain instructions on how to proceed will be provided.