Tag Archives: income tax

With April 15 fast approaching, one of the most frequent questions I receive from those considering filing bankruptcy is when should they file their tax returns. This is Part 2 of a 2 Part posting on this issue. In Part 2 below, I discuss reason NOT to file taxes as quickly as possible in anticipation of bankruptcy. Reasons to Hold Off Filing Taxes Since taxes are not due until April 15, if you expect to owe taxes, there is no reason to rush the filing due to the bankruptcy. The fact is that your 2011 tax returns are not due until April 15. Accordingly, if you file for bankruptcy at any time up to April 15, 2012, you are only required to provide your 2009 and 2010 returns. If your 2009 income was less than your 2011 income, it may be advantageous to hold off on 2011 taxes. However, most…
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With April 15 fast approaching, one of the most frequent questions we receive from those considering filing bankruptcy is when should they file their tax returns. This will be Part 1 of a 2 Part posting on this issue. In Part 1 below, we discuss reasons TO file taxes as quickly as possible in anticipation of bankruptcy. Reasons to File Tax Returns as Quickly as Possible Anyone who files bankruptcy this time of the year will eventually have to turn over their 2011 tax returns to the Trustee. Having the returns completed and filed eliminates one more task. By filing your returns early, and receiving your refund before you file, you should be able to keep and use the refund. Make sure that you do not use your refund to pay creditors to whom payment could be considered a preference or to those creditors you are expecting to discharge in…
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