The ability to discharge taxes is one of the most useful benefits of filing a bankruptcy case. The analysis and determination of whether unpaid taxes meet the tests for dischargeability in bankruptcy often require the assistance of a bankruptcy professional. Theron Morrison and the Morrison Law Group may provide such necessary assistance when debts include unpaid, delinquent taxes.
11 U.S.C. § 521(f)(1) provides that at the request of the court, the United States trustee, or any party in interest in a case under chapter 7, 11, or 13, an individual debtor must file with the court a copy of each federal income tax return with respect to each tax year of the debtor ending while the case is pending. This also includes untimely filed returns and amendments.
11 U.S.C. § 521(f)(4)(B) further provides that in chapter 13 cases, a debtor must provide under penalty of perjury, a statement of the income and expenditures of the debtor during the tax year most recently concluded before this statement is filed. The statement must include the monthly income of the debtor, and show how income, expenditures, and monthly income were calculated.
This statement of income and expenditures is due on the date that is either 90 days after the end of the applicable tax year or one (1) year after the date of the commencement of the case, whichever is later, if a plan is not yet confirmed.
This statement is due annually after the plan is confirmed and until the case is closed, not later than 45 days before the anniversary of the confirmation of the plan.
Local Bankruptcy Rules provide for dismissal under § 521 of the Bankruptcy Code for the failure to provide tax returns. Cases will be dismissed by the court under § 521 upon motion and after a hearing and notice to the debtor. Any motion to dismiss filed by a creditor must include a provision that the creditor timely requested a copy of the tax return under the Bankruptcy Rules.
Most debt collectors assume that consumers are unaware of their rights and protections under federal law. However, Theron Morrison cares about protecting your rights. Theron Morrison has the necessary experience to ensure that all consumers receive the full benefit of the protections afforded them by federal and state law. Call 801.456.9933 today to schedule a FREE consultation. We have locations in Ogden, Logan, Sandy, and St. George to serve the residents of the counties of Weber, Cache, Salt Lake, Utah, Morgan, Davis, Washington, and surrounding areas.