I received an order to turnover to the trustee a copy of my tax return and the estate's portion. I sent the trustee a copy of my 1040 but not return (as that is pending from the IRS). A few days later the trustee filed this:
...report that I have neither received any property nor paid any money on account of this estate; that I have made a diligent inquiry into the financial affairs of the debtor(s) and the location of the property belonging to the estate; and that there is no property available for distribution from the estate over and above that exempted by law. Pursuant to Fed R Bank P 5009, I hereby certify that the estate of the above-named debtor(s) has been fully administered. I request that I be discharged from any further duties as trustee.
Do I send my refund?
Ran out of room, but do I need to still send the trustee the estate's portion of my return (it would be at most about $500, if that, once I receive it).
Your question is confusing. The "return" is the report of income you file with the IRS. The "refund" is the money the IRS sends you back. It's clear that the trustee wanted your return. It's not clear whether he asked for your refund. Your attorney should contact the trustee to see what's up, given that the trustee has already filed a no-asset report.
Chapter 7 Bankruptcy Attorney
Contact the Trustee to see if s/he wants your refund or not. Depending on the size of the refund, it may be eligible for an exemption or be too small to administer, and you could keep it. The report you received was merely a snapshot in time based on the information available to the Trustee. It is not a determination that you are or are not able to retain your tax refund.
Hope this perspective helps!
Chapter 7 Bankruptcy Attorney
This is a Report of No Distrubution. This is good news. It means the trustee has concluded that he or she is not going to collect any assets from you. I assume the trustee saw that the amount of refund would be small. You can confirm with the trustee's office if you want and if you do not have an attorney to ask, and I have seen perhaps once or twice a trustee withdraw a Report of Do Distribution, but this document means you do not have to turnover the refund.
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You are safe. The trustee has determined that the amount of the refund is not worth administering as it will not bring a meaningful benefit to the estate. The Trustee is abandoning his/her interest in the refund.
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