Platinum Tax Defenders Offers Tips On What To Do Before Filing For Bankruptcy
- August 10, 2019
- Posted by: Platinum Tax defenders
- Category: Tax Resolution
Should you Settling back taxes before filing bankruptcy? Platinum Tax Defenders has your tips. The expert team at Platinum Tax Defenders has helped thousands of U.S. taxpayers solve their back-tax issues. If you’re considering filing for bankruptcy soon, you may want to consider settling your back taxes. When you register for bankruptcy, you must get your finances in order before going to court. One of the tasks you are expected to complete is being caught up with filing your back-tax returns. Even one unfiled tax return could put your bankruptcy case at risk. Read on to learn how unfiled tax returns can negatively impact bankruptcy filings and any potential IRS refunds. If you’re considering filing for bankruptcy, call Platinum Tax Defenders Today.
Bankruptcy Filers Must Disclose Tax and Income Information
No matter which chapter of bankruptcy you’re filing, you must submit the Disclosure of Income and Tax Information document. Platinum Tax Defenders can help you submit this document, which indicates your financial affairs to the court of the state. Also, the report lets the trustee and judge know precisely how much money you have. The document also states the worth of the assets you have had access to in recent years.
Platinum Tax Defenders can help you gather necessary information to submit, including proof of your bank and income earning statements. However, it can be very time-consuming to gather all of this information. Additionally, you could provide the government with the wrong total. Get a more accurate number of how much you’ve earned and received with your filed past tax returns. For that reason, it’s helpful to consult the experts at Platinum Tax Defenders before filing. You can make filing for bankruptcy easier by submitting all of your tax returns.
How do tax returns relate to Chapter 13 bankruptcy?
If you’re filing for Chapter 13 bankruptcy, you must submit all of your tax returns for the previous four years. You will have until the day before you meet with creditors to file back taxes. Also, you must provide the trustee working on your case all copies of previous returns. Should you fail to submit all back taxes, you risk making the trustee upset. Also, your case could be handed off to a federal bankruptcy judge. A judge may not be as lenient in giving you more time to file your back taxes.
Additionally, filing back taxes before bankruptcy may allow you to:
– Discharge tax debts older than three years old
– Avoid additional interest and penalties on back taxes
– Satisfy an IRS tax lien
– Encourage the IRS to abide by a court-ordered plan dealing with back taxes
Working with the tax professionals at Platinum Tax Defenders can make the filing process much easier and efficient.
How do tax returns relate to Chapter 7 Bankruptcy?
If you’re filing for chapter 7 bankruptcy, you have until seven days before meeting with creditors to file back taxes. Filing your back taxes will let the court determine whether or not you may receive a refund. Additionally, the trustee will decide whether or not you get to keep the money. If you don’t get to keep the money, your creditors will get it. Whether or not you receive the refund will depend on a variety of factors. The court will review the amount of your refund, what bankruptcy exemptions you have, and when you file your case.
How do unfiled tax returns impact your bankruptcy case?
You can negatively impact your bankruptcy case if you don’t file your past due tax returns. If you’re filing chapter 13 bankruptcy, the court could decide that you can’t pay some or all of your debts. Should you file a chapter 7 bankruptcy, the court may now permit some or all of your debts to be discharged.
It’s highly recommended to file past due tax returns before going to bankruptcy court. You can help your tax attorney deal with potential obligations now rather than negatively impacting your case later.
How do anticipated tax refunds affect bankruptcy?
Any tax refunds you may receive while filing for bankruptcy will be considered part of your bankruptcy estate. That’s the law. Almost all of the assets you own may be included in this estate and taken into consideration. The court will determine if any of the assets could be liquidated to pay off your debt.
In some cases, you may qualify to have your tax refund exempted from being included in your bankruptcy estate. However, the trustee overseeing your case can claim it and distribute it among your creditors. The experts at Platinum Tax Defenders can help you save time and trouble of dealing with courts on your own.
Platinum Tax Defenders Says Timing Your Bankruptcy Filing Essential
If you want your potential tax refund to be exempt from your bankruptcy estate, timing your bankruptcy filing is essential. It could be beneficial to wait until you receive the tax refund before filing. Once you receive it, spend it so the court can’t give it to your creditors. However, while spending you should not buy anything significant that the court may liquidate.
You should use your refund for expenses such as:
– Mortgage payments
– Car maintenance
– Basic living expenses
Once you spend your refund, you can file for bankruptcy and provide a truthful account for how you utilized the money. The court cannot deny that you spent your refund to support you and your household.
Platinum Tax Defenders Says Tax Filing Status Affects Bankruptcy Cases
In essence, the filing status of your tax refunds always impacts the outcome of your bankruptcy case. Before you file for bankruptcy, submit all of your past due returns. In some cases, you can time the filing of your claim to protect the status of an expected tax refund. Consult with a tax professional to ensure the exemption of your refund as part of your bankruptcy case.
Get Help From The Tax Resolution Specialists At Platinum Tax Defenders
Before you file for bankruptcy, make sure your tax returns are up to date. The professionals at Platinum Tax Defenders can help you file past due tax returns. For taxpayers who aren’t sure how to settle back taxes, consult a tax resolution professional. A tax relief specialist can advise you of the best methods to resolve your back taxes.
Additionally, Platinum Tax Defenders may be able to help you settle back taxes for less than you owe. A tax relief specialist can also advise you on how to deal with the IRS. Instead of having your wages garnished, resolve your back-tax debts. You can settle your back-tax debts by asking for penalty waivers, payment arrangements, and other options. A tax relief professional is the best one to advise you on how to deal with filing back returns. Get your account back in good standing with the IRS. Contact the experts at Platinum Tax Defenders today for a free consultation.