Legal Question in Tax Law in Oregon

Which comes first? Bankruptcy or Filing Back Tax Returns?

Hello,

Background: I have not filed tax returns for four years. My income is mainly on 1009's from sales and working as a caregiver for my mother. I'm estimating about $10,000 of tax liability for all 4 years - that's without fees and penalties.

I am also am planning on filing a Bankruptcy - Chap 7. which would include approx $30,000 of debt fom a failed business venture. This is old debt, from 6 years ago - it should fall off next year, but I'm worried about it turning to judgements and staying for 10 more years.

My current income is $700 a month gross working as a caregiver and $1000 in child support. I have two dependents.

My Question: What should I do first? File Taxes? File Bankruptcy? Can the back taxes be included in a bankruptcy? What about working out a deal with the IRS? Can one person help me - a combo tax/BK attorney?

I'm ready to get my life back in order, I just don't know where to start. Thank you for your help!


Asked on 10/21/02, 10:13 pm

1 Answer from Attorneys
Ronald Cappuccio Ronald J. Cappuccio, J.D., LL.M.(Tax)

Re: Which comes first? Bankruptcy or Filing Back Tax Returns?

You should file your tax returns first. If a tax return is not filed, it cannot be discharged in bankruptcy. Also, there is a 3 year period from the filing to dischargeability. Please see my website at http://www.taxesq.com for articles on this.

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Answered on 10/21/02, 10:17 pm


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