Do I need to inform the accountant that I filed bankruptcy when I am turning in my paper work? What happen to refund?
Tax time again and soon I am going to filed my income tax return 2012. I need to find out if I will notify the accountant that i filed bankruptcy. Is it affects my refunds if there is any. What happened to me in this situation? When I can start building my credits again? And how?
Seeking your gifted advise. Thanks
here is an excellent situation where representation by experienced counsel in a bankruptcy can be critical. The general information about the law and legal procedure we can provide on the AVVO Q&A might well not meet your needs.
There is nothing good to be gained by failing to tell your accountant about the bankruptcy, but there is everything (including your discharge) to be lost for failing to comply with the Bankruptcy Court's "Income Tax Turnover Order." Retaining counsel to assist would be prudent.
Best wishes for an outcome you can accept, and please remember to designate a best answer.
This answer is offered as a public service for general information only and may not be relied upon as legal advice.
The creditors may have sent you forms about discharged debts. If you do not file additional tax forms to indicate that the discharged debts are not income to you, the IRS will be wanting you to pay income tax on the discharged debts.
Some creditors may take their time in reporting the discharged debts. So, you may not receive the forms until a year or so later.
Before rushing off to apply for credit, you may want to look at why you had to file bankruptcy in the first place and work on the issues so that you do not build up more unmanageable debts. You may not be able to file bankruptcy again in the next few years.
Bankruptcy is not a taxable event & I am unaware of any provision in the tax code that requires you to include information about your bankruptcy on your return. However, your bankruptcy trustee will require a copy of your tax return and may require you to turn over any refund check. Hope this perspective helps!