For bankruptcy cases filed after October 16, 2005, the Bankruptcy Code requires Chapter 13 debtors to file all required tax returns for tax periods ending within 4 years of the debtor’s bankruptcy filing. All such federal tax returns must be filed with the IRS before the date first set for the first meeting of creditors. The debtor may request the trustee to hold the meeting open for an additional 120 days to enable the debtor to file the returns (or until the day the returns are due under an automatic IRS extension, if later). After notice and hearing, the bankruptcy court may extend the period for another 30 days. Failure to timely file the returns can prevent confirmation of a Chapter 13 plan and result in either dismissal of the Chapter 13 case or conversion of the case to a Chapter 7 case.
Robert E. McKenzie authored a blog for Forbes‘ “IRS Watch” called, “Private Tax Collectors And Taxpayers’ Right To Avoid Them.” Mr. McKenzie describes how President Obama’s 5-year infrastructure spending Bill added private IRS debt collectors as part of H.R. 22 – Fixing America’s Surface Transportation Act, the “FAST Act.” Additionally, he goes on to explain the Fair Debt Collection Practices Act (FDCP).
Click here to read the full article.