Legal Question in Bankruptcy in California
Are the taxes owed or discharged?
I filed for Chap. 7 in 2007. I was being charged,( by the State of CA ) for taxes they estimated that I owed for 2003 & 2004. I had never filed although I filed for a 1040 extension(s) and paid an estimated tax owed of $500 for each year. I listed those estimated taxes on my creditors list and I received my discharge but the state is saying that I still owe them the tax which they estimated to be $7,000 plus $3,000 in penilties. Is this true. PS.. I used an Bankruptcy attorney who was useless.
2 Answers from Attorneys
Re: Are the taxes owed or discharged?
One of the most basic rules on discharging taxes is that the tax debt must be more than 3 years old. This rule is mostly mechanical and only requires an analysis (from the transcript) of whether the taxpayer went on extension, which pushes
the three rule out past the usual April 16th date to either August 16th or October 16th, as the case may be.
This rules doesn�t get into the issue of the tax payer having actually filed a return or something that works as return that really isn�t a
return. Even if you had filed your tax retursn on time, the 2004 tax debt would have been less than 3 years old at the time that you filed for bankruptcy.
Your 2003 tax debt would have been due no nearly than April 15th, 2004 even if you had filed a return and you extension request would have moved that out even longer.
To make a long story short, the facts that you disclosed seem to suggest that you did NOT receive a discharge as to the 2003 and 2004 tax debts.
Re: Are the taxes owed or discharged?
One of the most basic rules on discharging taxes is that the tax debt must be more than 3 years old. This rule is mostly mechanical and only requires an analysis (from the transcript) of whether the taxpayer went on extension, which pushes
the three rule out past the usual April 16th date to either August 16th or October 16th, as the case may be.
This rules doesn�t get into the issue of the tax payer having actually filed a return or something that works as return that really isn�t a
return. Even if you had filed your tax retursn on time, the 2004 tax debt would have been less than 3 years old at the time that you filed for bankruptcy.
Your 2003 tax debt would have been due no nearly than April 15th, 2004 even if you had filed a return and you extension request would have moved that out even longer.
To make a long story short, the facts that you disclosed seem to suggest that you did NOT receive a discharge as to the 2003 and 2004 tax debts.
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