Legal Question in Bankruptcy in California

If a trustee takes over a corporation in bankruptcy, what is the penalty to an officer for filing tax returns for the corporation?


Asked on 6/21/10, 1:09 pm

1 Answer from Attorneys

David Gibbs The Gibbs Law Firm, APC

I'm not sure that I understand the question. Why would anyone file tax returns for a corporation that is being operated by a Trustee in bankruptcy? Why would you take on the liablity that goes with the filing of the returns when the Trustee should do so? In any event, if the tax returns are true and correct, and you did not obtain any benefit from them (i.e., you did not take a tax refund that is property of the bankruptcy estate), then the penalty may be inconsequential. It all depends upon how angry the Trustee is going to be with your activity. If the Trustee is upset by your activity, it could be considered to be interference with the administration of a bankruptcy estate, which could result in both civil and criminal penalties. You need to meet with a qualified bankruptcy attorney to discuss more details - from the little you have provided here, it is impossible to properly answer your question.

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Answered on 6/22/10, 8:08 am


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