Even if you file your taxes late you can still file bankruptcy. When you
begin the filing process you are required to provide documentation about
your finances, debt, and monthly income. Your tax returns are necessary
for a matter of reasons.
Tax returns, including federal and state tax information, should be accurate
for verification purposes. When you file you are required to include information
for the most recent tax year. Even if you file for an extension to submit
your return after the April 15 deadline, your return should be completed
and filed. If your taxes are not filed before the creditor’s meeting
occurs your case could get dismissed.
Having your returns filed helps accurately determine your budget and repayment
options. Whether you file
Chapter 7 or
Chapter 13 bankruptcy, you may not have a clear idea on what debt is owed or how you can repay
it unless your tax information is completed. In many cases, the Internal
Revenue Service (IRS) may complete a return on your behalf to estimate
potential taxes owed until you file the return. If this occurs it could
lead to higher Chapter 13 payments due to tax returns that have not been
assessed or filed.
When you complete your returns it is important to report information accurately
as it will be reviewed when bankruptcy is filed. Any problems could delay
the bankruptcy court from discharging debt. Discuss you
tax debt concerns with your bankruptcy attorney in Dallas-Fort Worth.