Schenectady, NY | February 25, 2012 10:22pm
I am a self- employed sole-practitioner contractor. I don't get 1099's, but have a business bank account. Its been a terrible few years, and I can't put off Chapter 7 anymore. But I've heard I need to have all my taxes filed before filing bankruptcy. Is that true? I haven't filed since 1997. Do I have to do all my taxes and file ALL those years? Or do I need to file for only the last 7 years? Or last 4?
Posted February 25, 2012 10:48pm
File all of them.
It starts the statute of limitations as to all of them.
Although you may not be able to discharge tax debt in one step this time, you may want to try again in 8 years and if those returns are not filed, the years will stay open.
also, you have to be the SFR in those years. What if the SFR's are not filed, but will be. That will most
certainly be triggered by a couple of more recent filings.
SFR will preclude in most cases your discharging the debt for those years.
FILE ALL OF THEM. Even if you BK now, you will start designating tax payments on most recent years. to keep early tax years eligible for discharge next time around.
Further, if you can wait 2 years, you may be able to wipe out a lot of debt.
Be careful, and SEE A BANKRUPTCY ATTORNEY WHO KNOWS TAX, IMMEDIATELY.
Curt Harrington Patent & Tax Law Attorney Certified Tax Specialist by the California Board of Legal Specialization PATENTAX.COM This communication is general information and not legal advice, and does not create an attorney-client relationship. This communication should not be relied upon as any type of legal advice. Please note that no attorney-client relationship exists between the sender and the recipient of this message in the absence of either (1) a signed fee contract and (2) remission of an agreed-upon retainer. Absent such an agreement and retainer, I am not engaged by you as an attorney, nor is any other member of my law firm.