Check Out These Great Tips For Filing Your Taxes After Bankruptcy!
If you have recently filed bankruptcy, you may have questions about what to do about your income tax. While bankruptcy discharges many debts, tax obligations are usually not among those covered by the discharge. Therefore, it is very important to stay current on your taxes or to catch up if you have fallen behind. Here are some tips on handling your taxes before or just after you have filed bankruptcy:
- Be aware that you cannot discharge tax debt. Except in very special circumstances, tax debt remains on your record after your other debts are discharged. Therefore, if you are not already behind on your taxes, try to stay current. If you are behind on paying your taxes, talk to your bankruptcy attorney about how to negotiate with taxation authorities and set up a payment plan.
- Be aware that you must file a return or extension request. According to IRS Publication 908, Bankruptcy Tax Guide, debtors who do not file a return or request an extension could have their cases dismissed by the bankruptcy court. Therefore, it is very important to take care of this right away. Remember that you can amend a tax return at a later time, if necessary, so even if you are fairly certain that your situation may change, you should still file on time or request an automatic extension. An extension does not relieve your tax burden but does notify the IRS that you are aware that you must file a return and will pay the amount in question.
- Keep up with filing dates. Everyone thinks of April 15 as “Tax Day,” but there are different deadlines for small businesses, certain types of returns and other special circumstances. Be sure you know your filing deadlines; you can find these on the IRS website at irs.gov.
- Be aware that there will be two tax filings. Not only will you file a personal return; your trustee will also file a form for the bankruptcy estate. It is very important that these two filings match, or you could face an audit. If in doubt, talk to your bankruptcy attorney.
If you are facing bankruptcy, contact the bankruptcy attorneys at Oswalt Law Group in Phoenix. We can help you navigate the complicated process of filing bankruptcy and meeting all of your legal obligations in order to receive a discharge of your debt. Call today for more information.