tax returns bankruptcy
Can I file bankruptcy on money I owe for state tax returns?
I am in the process of filing bankruptcy in Indiana. Today I got a letter saying I owed $110 to the state of Indiana for taxes I didn’t pay. I figured what the heck I am already filing why not add that to the list. Can I?
and please no “Don’t file its wrong blah blah” I didn’t ask for a personal opinion 
Hello there,
You ask if you can add it to the list? Under bankruptcy law, you do not have a choice. You must disclose all debts and all assets. Whether the debts will be discharged in the bankruptcy does not matter. All debts (and all assets) must be disclosed (listed) on your bankruptcy petition. There are several places that you will sign that petition. Your signature is under penalties of perjury that the petition is complete and accurate to the best of your knowledge. So, in short, you must list the tax debt.
As to whether the tax debt is discharged in the bankruptcy, the general rule is that tax debts are dischargeable if the return has been filed for 3 years and in the case of tax assessments after a return has been filed, 2 years since the assessment. That is the general rule. Certain types of taxes are not dischargeable in bankruptcy no matter how old they are.
You should discuss which debts will be discharged and which debts will survive the bankruptcy with the attorney who is preparing your petition.
If you have already filed your petition, you must tell your attorney about the newly discovered debt in order that the attorney can file an amendment. For most amendments there is a $26 filing fee plus whatever your attorney charges for legal fees in preparing the amendment.
While you case is before the bankruptcy court, the tax authorities generally can take no action to collect. For taxes that survive bankruptcy, here in Indiana, you can expect to hear from the tax folks as soon as 2 weeks after the bankruptcy case is closed. that means it is best to start planning how you are going to repay tax debts before you bankruptcy case is closed.
Good luck to you,
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Tax debt not discharged in bankruptcy when service prepares returns.: An article from: The Tax Adviser $5.95 This digital document is an article from The Tax Adviser, published by American Institute of CPA’s on December 1, 2003. The length of the article is 1062 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.Citation DetailsTi… |
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IRS-prepared form 4549 was return for bankruptcy code purposes.: An article from: The Tax Adviser $5.95 This digital document is an article from The Tax Adviser, published by American Institute of CPA’s on August 1, 2000. The length of the article is 678 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.Citation DetailsTitle… |
