Filing Tax Returns While in Bankruptcy
Many Debtors decide to file a Chapter 13 Bankruptcy because they owe IRS debt. Some know exactly how much they owe because they have filed all their tax returns and have just been unable to pay the IRS the money due. Others know they owe the IRS, but are unsure of how much they owe because they have not filed their tax returns.
If a Debtor decides to file a Chapter 13 bankruptcy, he must be sure he has filed his tax returns for the past four years, and he must file them going forward. If the tax returns haven’t been filed, they need to be filed within thirty (30) days of filing the bankruptcy. The Trustee’s Office requires a Debtor to provide them with copies of the last two years tax returns that were due. Also, the IRS requires a Debtor to have filed the last four years tax returns. If the returns are not filed, a Motion to Dismiss will be filed and granted if the tax returns are not filed before the hearing.
Another reason to be sure to file your tax returns if filing a bankruptcy to help alleviate IRS debt is so the IRS knows how much you owe them. If the tax returns have not been filed, the IRS will file a proof of claim with an unassessed amount, which is going to be higher than if the Debtor files his tax returns.
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