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If you have filed Chapter 7 this year and your spouse has failed to turn over her tax refund can either of you be brought up on criminal charges?
Normally no. What is most likely to happen is that your bankruptcy will be dismissed for failure to comply with the Trustee's request for the documents.
I agree with Nate; failure to produce the tax refund normally results in dismissal rather than in criminal proceedings. However, if one spouse complied with the trustee's wishes and one spouse did not, the spouse who complied can move to have the case de-consolidated, so that the spouse in compliance still successfully receives discharge and only the non-compliant spouse gets dismissed. The court charges a fee to de-consolidate a case, and the attorney representing the debtors normally charges additional fees for the extra work as well.
Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person.
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First it all depends on how much you may have owed. And, realistically, how well the current situation can be resolved. Now the funny thing is, to many of us in the… tax profession, in many, many non-filer cases...it actually turns out that the taxpayer had money and benefits due them for several years had they filed! Frequently much more than they may have had an obligation to pay in other years. They just didn't understand. Unfortunately, the way the law works is the time limit for claiming the refund for many of the years may have expired...but as the time limit for being assessed doesn't start to run until a return is filed, any tax owed is still owed. (Obviously old and non existant records can make things even more difficult to support). Squaring up with the IRS in thesecircumstances is not for the inexperienced or faintof heart. There are options and processes that can limit the amount you eventually owe...and in most cases the IRS is most interested in getting you back in taxpayer status. Make sure you don't forget your State will be interested too. I suggest employing a well experienced pro in this...CPA, Tax Lawyers are good choices, but my favorite is someone called/titled an "enrolled agent", or EA. These are frequently ex-IRS officers and have a very good understanding of how and what flies with the IRS the best.
I assume you mean "how do you keep your tax REFUND when you file a chapter 7 bankruptcy?" A tax refund is an asset of the estate and, generally, the trustee will take it. Ther…e are two ways to avoid this, first way would be to delay filing your bankruptcy petition until after you have gotten your refund and spent the money. The second way is to declare part or all of the refund to be part of your exemption, however exemptions are small and most people have other assets (like computers, wedding rings, paychecks, etc.) they want to protect with their exemptions.
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.
No you can not do it, as you have already filed under chapter 7 once before you have to clear up first. ans Under the bankruptcy laws effective on October 17, 2005…, Chapter 7 cannot be filed unless the debtor was discharged from the previous Chapter 7 or bankruptcy more than eight years ago. The debtor cannot file a Chapter 13 unless: (1) the debtor received a discharge under Chapter 7, 11 or 12 more than four years ago; or (2) the debtor received a discharge under Chapter 13 more than two years ago.
You need to discuss this with your attorney. Once you receive your tax refund, it's part of your personal assets that could be seized to pay creditors. If you file bankruptc…y before you get your taxes then the government will keep your tax refund and put it towards your debt. The bankruptcy court has 1 year to go back and open your case even after your bankruptcy has been discharged. If you can prove that the money is needed/used for catching up rent or other nessacery bills they will not take it.
Contact your local property tax department and request a copy of the form that you will need to use to file for the property tax refund or you could try and see if this could …be done online at the local property tax online website.
That depends. If you didn't overpay your taxes through withholding or other means, you won't get a refund. If you were not required to file a tax return in 2007 and are du…e a refund, there is no reason you shouldn't get it. If you had income in 2007 that the IRS is aware of (say because it was reported on a W-2 or 1099) and that was sufficient to require the filing of a 2007 return, your refund may be held up until the 2007 issue is resolved. If you meant to ask "Is there still time for me to get a 2007 refund?" the answer is an emphatic yes. All you have to do is fill out your 2007 tax forms and mail them in. It's really that simple. Even if you didn't file a 2007 tax return, you should file a 2008 tax return on time if you are required to file for 2008. A lot of people, for one reason or another, neglect to file a tax return for a year or two. They then become scared and stop filing tax returns for future years. Even if you missed a return in the past, you should file this year's return on time. Each and every year you miss is a separate offense and subject to a whole new set of additional possible penalties. Not filing for 2008 will not help your problems from past years. In fact, it will compound your problems and make them orders of magnitude worse. If you should have filed taxes in 2007 or you were owed a refund from 2007, file your 2007 taxes now. And regardless of what you do about 2007, file your 2008 taxes on time.
Yes. For 3 years. They do not take it all. You will get to keep your EIC and certain other credits that may be given that year. This is per my bankruptcy lawyer.
Yes. You are allowed to switch from chapter 13 (which is often a very hard plan to meet and maintain) to chapter 7 one time without questions.
How long after you file a chapter 7 are you supposed to turn over property or do you wait for the meeting of the creditors so the court can tell you?
In the case of a home, it will be sold at Sheriff sale on its own. (or the Trustee may sell it) In the case of any other property, the Trustee must abandon the property, then… the Creditor will contact you (or your attorney if you have one) to arrange to get the item. If its a car, or some other type of personal property, you can sometimes accellerate the process by calling the creditor's attorney. (Or the creditor if they don't have one) Ask the Trustee at your 341 hearing (meeting of the creditors) what he/she thinks. They may abandon it right there.
How long should a person wait after a chapter 13 bankruptcy is dismissed to file income taxes for that year to guarantee to receive the refund?
You have to file your income taxes yearly regardless of whether you have filed for bankruptcy or not. Yes, IRS may garnish your refunds to pay toward your debts. If your bank…ruptcy is over however, you don't have to worry about that.
Can criminal charges be brought against you if your car was supposed to be repossessed and you have not turned it over?
Answer Usually, the payment agreement for your car is considered a civil issue and should you choose to turn your car in after they have tried to reposses …it, you should not face and CRIMINAL charges. However, the loaning agency always reserves the right to sue you for monitary considerations.
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.
Either way they will want a tax return filed before filing for chapter 13. If you are expecting a refund then they will seize it if it is after so to keep the money fi…le first and wait for the return, it will be considered as part of your income. If you owe it is better to know the amount before filing.
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.
Under the current bankruptcy law, you have to follow the instructions on the judge's decree. You may come under a category that you owe nothing following the judge's ruling. Y…ou may not. Either read the ruling, get someone to read it to you, or go to the court and purchase a copy to replace the one you lost.
You may get it, but you will have to turn it over to the trustee. It may shorten your plan payment time period.