I have a new policy regarding the deadlines for filing prepetition tax returns. Debtors have only 60 days after the first date set for the section 341 meeting to get tax returns filed. For 2019 cases, debtors must file 2015, 2016, 2017, and 2018 tax returns before the plan can be confirmed. Read on for more details.
Debtors’ attorneys in the EDKY: This post addresses three issues: (1) the Debtor Handbook; (2) a new letter going to debtors at confirmation; and (3) more specific information about your clients’ obligations to pay post-confirmation tax refunds or bonuses or to provide documents.
Frequently, debtors who seek bankruptcy relief under chapter 13 have not yet filed some of their tax returns with the IRS or state taxing authority. Section 1308 of the Bankruptcy Code gives chapter 13 debtors an opportunity to get those returns filed so they can deal with their tax debts in the chapter 13 case, but there are deadlines to be met and consequences for failure to comply. Until all tax returns for the previous four years are filed, the plan cannot be confirmed, and if the returns are not timely filed, the debtor’s case could be dismissed. [More]