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Can you include past due income taxes in a bankruptcy?
Taken from the webpage of King Law firm
State Income Tax Claims, Federal Tax Claims, and Real Estate Taxes must be included in a bankruptcy filing. Income tax claims that are less than three years old will usually be consolidated with other debts and paid over three to five years in a Chapter 13. Depending upon income and assets, income tax claims for returns that were filed more than three years before the bankruptcy can sometimes be reduced substantially in a Chapter 13 and eliminated completely in a Chapter 7.
Generally personal income taxes that are over three years old, and were assessed at least 240 days prior to bankruptcy filing, and voluntarily filed at least two years ago, can be included in a bankruptcy. However, most taxes aren't dischargeable. The trust fund portion of employment taxes is not dischargeable in bankruptcy; therefore, an Offer in Compromise is the only way to effectively eliminate the burden of the trust fund portion of employment taxes.
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This question has been discussed many times here..and there seems to be no hard and fast rule. Certainly, it depends on several things. Most importantly, is what perio…d the overpayment reflected in the refund really relates to. For example, say it is a refund for a year and you filed BK in Dec of that year. Basically, all of the tax you paid in was from pre-petition...had you had the correct amount withheld (or by estimated payment, hence no refund of overpayment being made), presumably (and rightfully) that additional amount would have been available to pay those creditors. Consider, you could have had more (even 100%) withheld and deposited in your account with the Government, that shouldn't mean you get to essentially just withdraw it now. (Had you put it in a bank account you wouldn't expect to). On the other hand, if you file the BK in January, then virtually all the overpayment is due to earnings post petition...which are actually yours and not part of the bankruptcy. Viewed this way, I think the actions make some sense. Add in any complications, like you don't make earnings evenly through the period...and it's a question needing a reasonable solution you may need to propose to the trustee.
Apr 29 midnight
The oiriginal (1913) due date was 1 March In 1918 that date was moved forward to 15 March and remained so until 1954 when the current due date of 15 April was estab…lished.
April 15th is when yearly taxes are due. although an extension can be filed
When you are in a chapter 13 bankruptcy and have to turn over your income tax refund does this include earned income credit?
Answer Probably. It too is an asset. And, if you had savings or an investment with interest available, that too could be used. However, from discussions here i…t seems tax refunds are not always seized as part of the BK process.
April 18, 2011 is the Due Date for Federal Income Tax Returns and Tax Extension requests.
ALL assets and ALL liabilities are included. Each are given different priority. Taxes are a liability. They are included and given their priority.
The total amount of your federal income tax that is due for the calender year taxpayer is usually due to be postmarked before MIDNIGHT April 15 of the year after the tax year …that the 1040 federal income tax return is for. After that due date penalties and interest will start to be added to the amount of past due taxes until the amount is paid in full.
Yes, the state and the government can garnish your income tax return. Call and make arrangements before this happens as this will involve several people at your employme…nt. People do not keep quiet about things like this and everyone will know. Not only that, but you could lose a sizeable amount of income that you need to live on monthly until the total balance is paid. If you make arrangements before this happens and you keep the arrangements, this can be avoided and will help your credit in the long run. Good Luck!
A basic, rough primer: BK is always done under FEDERAL Laws, in a Federal Bankrutpcy Court. Basically State makes little difference. (Yes the BK Courts operating in… certain areas have certain special exemptions and such, minor in the overall, generally intended to make things adhere to the local laws and customs better). In a personal bankruptcy, YOU go bankrupt. Not a debt, not a loan...not a car...not a this or that. ALL of your assets, of all types, MUST be disclosed and reported in BK, and ALL of your liabilities/debts must be too. No exceptions, no picking and choosing. They are all, always involved in some way. The court will then order each of them in priorities according to the laws. Some things may be exempt from use or discharge (like your personal furniture and retirement accounts are exempt and child support cannot be discharged) - and the rest may be used. With one to pay the other. (All possible creditors are contacted and asked to say what they are owed....you may be required to even take advertisments out to make sure everyone is notified). Any deal you've done for several years is open to scruitiny and review. The court can reverse them, take them out of the BK, or even have them prosecuted as trying to defraud your creditors. (So, no you can't sell your boat to your brother and then declare BK). Debts secured by an asset (say a car) have first call or right to the money received from that asset. If it isn't enough to pay the debt, the remainder of that debt becomes a general or unsecured claim against the BK., and has a chance to payment on that level too (albeit a lower priority than those who have yet to receive anything). The end/remaining amount that can't be satisfied is generally discharged by the court...meaning you no longer owe it. You get a fresh basically debt free start....many of those you owe don't get paid what they had expected and relied on, if anything. There are many other considerations too. BK will severly hurt your ability to get credit for a very long time for example. It is on your credit report for at least 10 years...and employers refer to that too, as do landlords and more. Many do not trust people with bankruptcies in their past, especially in the last few years. Many more things. Not disclosing all items is frequently tried and easily discovered, in which case - as you are swearing under oath to the court you included all info - your case is dismissed, and regularly, fraud charges are pursued. (Courts don't take to being lied to well). Many seem to fall into the trap thinking that they can trick or change or especially shortcut the system, or want to believe what they wrongly understand overrides things (like I don't have to report that asset because it is exempt). It simply ain't going to happen. The courts, Judges, laws, bankers, all those zillions of attornies, etc, have been through this thousands of times for many, many years. The processes are fairly well worked through and prepared for tricks and games. It is unlikely you would discover one that hasn't been tried a zillion times before! The Cos that claim they can change your record, or make magic happen (either before or after BK), are scams, and getting caught doing something unsavory (intentional or not), other than screwing up your bankruptcy filing, is frequently considered and persued criminally. (Think your financial troubles are bad, try adding in criminal ones). The legal process and system is demanding even for those experienced with it. Many of your creditors will have an attorney to assure they get as much as possible, even groups of lawyers, who specialize only in bankruptcy. Simply you should/better/need to have one too
How does one file for income tax that is past due when the past years income papers are ruined from water damage from leaky roof?
If you call the IRS or visit your local IRS office, they will be able to provide you Wage and Income transcripts. These will be transcripts of all of the W-2's, 1099's, …and other documents that were reported to them. That would give you a pretty good start.
Depending on some things, like when the tax was paid and when the BK was filed, the refund is like any other asset and available to creditors. The trustee or court would… take it and pay it to creditors according to their standing in the case.
Just filed? Just like always, except one would expect that it would be something the administrator will want, along with confirming the status of the account with the IR…S. The business last filing should be after it dissolves.
In US Air Force
Sure if you have a business then you can use the utility bills as your deductions
There are several things that are included on the income tax worksheet. It provides all of the information regarding the deductions that you can take such as medical and denta…l, contributions made, taxes paid, interest paid, casualty losses and other possible tax deductions in which you may qualify for.
Federal income taxes must be filed by April 15th every year. Extensions can be filed for those people needing a little more time to prepare their taxes. The above is true for …filing taxes; however, the actual income taxes are due when the income is earned. If income is not withheld by your employer or if you are self employed you will need to make quarterly estimated tax payments to fulfill your tax obligation.