A Proceeding Must Be Filed under Chapter 7 or Chapter 11.
A short year tax election is only permitted when the debtor has filed under either Chapter 7 or Chapter 11 of the bankruptcy code. The bankruptcy estate created by the case filing must have assets.
Only a Person Can Make the Short Year Election
A single, individual debtor or a married couple filing a joint bankruptcy petition is permitted to make the election if other requirements are met.
The Election Must Be Made in a Timely Manner
The election must be in writing and filed with with IRS by the 15th day of the fourth month following the month in which the bankruptcy was filed.
The Internal Revenue Service publishes a Bankruptcy Tax Guide, Publication 908, that contains a great deal of useful information on various tax matters related to bankruptcy proceedings. There are several articles on the "short year election" published on www.bankruptcylawnetwork.com.
This guide is intended as a general discussion of the topic and is not legal advice. It is not intended to form an attorney and client relationship with the reader and no such relationship will be established without further discussion, the payment of a fee, a conflict check and the execution of a written legal services agreement. I am classified by federal law as a debt relief agency and have been proudly filing bankrutpcy cases for consumers for more than 30 years.