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Before filing any case, all tax returns must be filed for prior
years. Without proof of filing, cases will be dismissed. Additionally,
be aware that taxing authorities receive notice of Chapter 7 filings
automatically, so that each debtor, in effect, gives notice to all
federal, state, and local tax departments of the intent to discharge tax
debts.
The ramification of this tax aspect begins an aggressive review of
government rights, and few debtors actually discharge past due taxes.
The rules for discharging taxes are complex, and at a minimum, require
that all taxes must be declared through a return for more than 5 years.
In practice, most agencies begin collection, levies and seizures long
before the expiration date for dischargeability.
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