It makes no difference. The refund of your overpayment is an asset that is part of your BK anyway. It was overpaid using funds before your filing, that would/could have been used to pay debts..it is a pre-ptition asset...simply on deposit at the Gov't. When you file to receive it is irrelevant.
Certainly. You should have disclosed what you expect from your tax refund in the Statement of Financial Affairs, and you have to turn the refund over to the trustee whether you disclosed it or not. Failing to disclose and failing to turn the funds over to the trustee could get you in serious trouble.
Any corporation can file for bankruptcy, whether or not it owes taxes. If the corporation is to be liquidated, any taxes it owes are the first priority to be paid, before the debts owed to others.
If you owe money to the IRS for prior years taxes, and you have a refund due to you on this year's taxes, the IRS will keep the refund and apply it towards the debt that you owe.
You cannot get a refund when you do not pay taxes.
The question is NOT whether taxes are dischargeable in a bankruptcy. The question that has been asked is whether the IRS can still pursue you for taxes that were discharged in a bankruptcy (which would obviously confirm that some taxes are dischargeable in specific circumstances).If your taxes were discharged in a bankruptcy, the IRS cannot come after you for those taxes after the bankruptcy has been discharged. If they are doing so, they probably did not enter them as discharged correctly on their computer system.To correct this, you should call IRS collections and explain to them that the taxes should have been discharged in your bankruptcy. Ask them to send a referral to the IRS Insolvency Unit, and the Insolvency Unit will be able to pull the bankruptcy records and confirm what should have been discharged.Note that any liens that were filed before the bankruptcy will survive the discharge process. So, although the IRS debt has been discharged a lien may continue to exist. This lien only attaches to equity that was exempted in the bankruptcy process (so if you had $20,000 of equity in your home that you exempted under bankruptcy homestead exemption, the lien continues to attach to that equity). It does NOT attach to any equity that builds in your assets after the filing of your bankruptcy petition.
I filed my Federal taxes for 2008 and just received a refund and I am in the process of filing bankruptcy this month will that refund be added as income to the bottom line?
Yes, you do. And any tax refund may have to be given to the trustee.
I depends on the type of bankruptcy and your agreement with the trustee/court.
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 bankruptcy is over however, you don't have to worry about that.
If you are due a refund for taxes filed for the 2005 tax year, that refund can be siezed to offset the student loan - and every refund after that too.
Certainly. You should have disclosed what you expect from your tax refund in the Statement of Financial Affairs, and you have to turn the refund over to the trustee whether you disclosed it or not. Failing to disclose and failing to turn the funds over to the trustee could get you in serious trouble.
No. Everything that happens in a bankruptcy case goes through the (7 or 13) trustee and if the trustee has not acted to get the refund, but has told you it must be sent to him/her, that is your obligation when you receive it. If the trustee did not know about the refund, and you omitted that information from your schedules, you may find your bankruptcy dismissed with prejudice, so you will not be able to re-file it for a while. If you owe the IRS back taxes, they may intercept it. Then it will depend on whether the taxes were or will be discharged. Talk to a lawyer.
Sure. The refund is only the amount you estimtaed as hence made as ocver paid, Had your estimate been more accurate or you had paid less then that amount, then the additional would have been avialable to pay creditors. You could have had more witheld, should that mean they should get less? Don't you think you should pay everyone as much as you can can o what you promised to paY? Its not exactly your refund....its money you put on deposit someplace else, and it should be used to pay those you promised it to.
If you still owe federal income taxes, they will. But if they don't take it, the chapter 13 trustee gets the tax refund. You should have listed any income taxes that were dischargeable (due more that 3 years prior to the filing date).
Yes. Bankruptcy does not change you absolute legal obligation to file taxes.
There is no maximum refund. If you overpaid your federal taxes, you'll get a refund for the overpayment no matter how much it is.
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 bankruptcy 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.