Tax Planning and Bankruptcy

: Chris Lee Law Firm

  Filed under: Taxes

taxesIf you are in a great deal of debt and it looks like that the only solution for you is going to be bankruptcy it is pretty difficult to even consider any type of tax planning. However, this can have some effects on your bankruptcy. Often a part of the debt load that an individual is facing includes some form of taxes.

Taxes Complicate Matters

These can be handled differently depending on which bankruptcy chapter you may be filing for. There are some important steps that you need to take in regards to your tax planning and your upcoming bankruptcy. The most important thing you want to do is make sure that all of your tax returns have been filed. If you are required to pay quarterly tax make sure that you are not withholding these or that you are not paying the full amount.

Once you have decided to go bankrupt you want to get yourself a Dallas bankruptcy attorney. You will need to discuss your entire debt situation with this professional and you should include any items that involve your tax situation.

You will then be advised as to what the best way to handle your tax it situation and also how your bankruptcy is going to affect this. You may also find out that the IRS has a publication number 908 that deals with the bankruptcy tax guide. You will probably find that you have to file your individual tax return or at least request an extension. This can have an effect on your bankruptcy as it could be converted or dismissed.

The bankruptcy trustee will have to file an estate tax return regarding your bankruptcy estate. In most cases this is reserved for only large bankruptcy cases, however. No matter how your taxes are dealt with in regards to your bankruptcy it is important that you get totally financially on track.

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