Bankruptcy and Taxes

First you need to file your taxes.  Before you can include taxes the IRS has to access your liability.  Taxpayers filing under chapters 7, 11, 12, and 13 of the Bankruptcy Code must file all applicable federal, state, and local tax returns that become due after a case commences. 

Failure to file tax returns timely or obtain an extension can cause a bankruptcy case to be converted to another chapter or dismissed. In chapter 13 cases, the debtor must file all required tax returns for tax periods ending within 4 years of the filing of the bankruptcy petition.

Bankruptcy is complicated. If you are thinking about taking this route please book an appointment or call this office.