Copies of Tax Returns

Must be Current on your fax filings

We must provide your bankruptcy Trustee a copy of your most recent tax filing.

How to get a copy of Your Tax returns

The IRS receives copies of all your tax documents and so you can easily obtain copies of them by mail or fax. You’ll need to fill out Form 4506-T to request your income documents. This form is used to request transcripts of various tax documents. To request the income documents, check the box for line 8, “Form W-2, Form 1099 series, Form 1098 series, or Form 5498 series transcript.”

Text from IRS tax code

The information will be mailed to you, and it will be a computer printout of the information contained on your various income documents. One word of caution: the IRS only retains the federal information on these forms. State and local information, such as state withholding amounts, will not show up on this transcript. After obtaining the transcript, you may want to contact the institutions shown on the transcript to obtain a copy of the original documents.

Your tax accountant is able to request these documents from the IRS for you as well, and the IRS can fax the documents to your accountant’s office. If you need these documents immediately, this will likely be the fastest way to obtain your income information.

The IRS keeps your tax documents in their database for a minimum of four years, and sometimes they will have up to ten years of documents in their archives.

If You Are Missing a W-2 Form

You can ask your employer to send new a copy of your W-2. Some employers charge a nominal fee for this service. Employers are required by law to keep copies of your W-2s and other payroll information for at least four years.

If You Are Missing a 1099 Form

Form 1099 reports interest, dividends, brokerage trades, and self-employment income. Banks may have tax documents available for downloading from their web site, or you can call their customer service number to get a new 1099 mailed to you.

Your broker will be able to mail you a copy of your 1099 to report stock trading and other investment activity. Or you might be able to download a copy from the brokerage web site.

If you earned more than $800 as a consultant or independent contractor, your client is required to send you a 1099-MISC to report your income. Even if you didn’t receive a 1099, you are still required to report the income to the IRS.

If you need to file bankruptcy and have questions about how you will be impacted by taxes then contact the Arizona bankruptcy attorneys at the Dunaway Law Group at 480-389-6529 or message us HERE.

Can I Discharge Tax Debt in Bankruptcy?

Is tax debt dischargeable in bankruptcy? Generally the answer is no, however, there are exceptions to this rule. If the debt is not discharged then it will still be owed at the end of a chapter 7 bankruptcy or you’ll have to repay them in full in a Chapter 13 bankruptcy repayment plan.

Dischargeable Tax Debt

You can discharge debts for federal income taxes in Chapter 7 bankruptcy, only if all of the following conditions are met:

1. The due date for filing a tax return is at least three years ago.

2. The tax return was filed at least two years ago.

3. The tax assessment is at least 240 days old.

4. The tax return was not fraudulent.

5. The taxpayer is not guilty of tax evasion.

Nondischargeable Tax Debts– The following type of non-income-related tax debts cannot be discharged in a Chapter 7 bankruptcy:

Tax liens. A Chapter 7 bankruptcy discharge of income taxes wipes out the personal obligation to pay the tax and prevents the taxing authority from going after your bank account or wages. However, tax liens, also known as secured taxes, will remain attached to your property. This rule applies only to tax liens recorded against your property before you file for bankruptcy. This means that although you might not be personally liable for the tax debt, you’ll have to pay the lien from any profits when you sell the property.

Recent property taxes. If a property tax is incurred before you file for bankruptcy, the tax is non-dischargeable. However, this only applies to property taxes last payable within one year of your bankruptcy filing. You can discharge your personal liability for property taxes that were payable more than one year before your bankruptcy filing. Keep in mind, though, that many counties attach a lien to your property upon assessment or one year afterwards. If you have a lien against your property for the property tax, that lien will remain after your Chapter 7 discharge.

Taxes that a third party is required to collect or withhold. This covers the so-called “trust fund” taxes such as FICA, Medicare, and income taxes than an employer must withhold from the pay of employees, and sales taxes paid by the debtor’s customers that the debtor is required to send to a governmental unit.

Certain employment taxes, excise taxes, and custom duties, depending on specific time periods.

Non-punitive tax penalties on nondischargeable taxes if the transaction or event that sparked the penalty occurred less than three years before filing the bankruptcy petition. Erroneous tax refunds or credits relating to nondischargeable taxes.

If you have delinquent taxes and wonder if they can be discharged in bankruptcy then contact the Dunaway Law Group at 480-389-6529 or send us a message HERE.