Legal Question in Bankruptcy in Maryland

''equivalent report or notice''

has anyone challenged this? Filed Ch 7 and was discharaged. IRS abated taxes for year 1992-96 and released. (additional income resulted from audit in 1998) State of Maryland refuses to discharge because of failure to file ''report of federal adjustment''. They are calling this the ''equivalent report or notice''. Has anyone ever challenged this? Does ''equivalent report or notice'' of the bankruptcy code refer to a equivalent report or notice to a return. MD's statue only calls for a letter and a copy of the IRS letter of determination. How can that be considered an ''equivalent report or notice''? It does not have the same requirements as a return.


Asked on 3/20/08, 9:58 pm

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: ''equivalent report or notice''

For an income tax to be discharged, a return, if required, has to have been filed at least 2 years pre-petition. States, including MD, tend to take an overly broad reading of this, and, depending on the specific facts, it may make sense to go back to the bankruptcy court and seek a determination that the state taxes are`discharged. We handle this sort of matter in MD and elsewhere, so feel free to contact me.

Read more
Answered on 3/20/08, 10:10 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in Maryland