Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Hi, I'd like to assist you with your bankruptcy questions today.
Was this an individual Chapter 11, or was the case filed in the name of your business?
You would likely want to file (or have the Trustee file, if possible) a 2012 tax return for the bankruptcy estate through the date the case was closed in April 2012.
For more specific details as to how you'd actually go about preparing such a return, please see IRS Publication 908 - Bankruptcy Tax Guide, here: http://www.irs.gov/pub/irs-pdf/p908.pdf. Please let me know if you have any additional questions. Thanks.
My husband and I filed a joint Chapter 11 for individuals.
So even though the plan was confirmed and I no longer needed debtor and possession accounts in Feb/2012, I would want to file the 2012 Form 1041 for income through April/2012 when the case was closed??
Thanks for your help!!!
Yes, I believe that would be correct. The bankruptcy estate is technically still open (and the assets still subject to administration) until the case is closed.
Also note that per IRS Publication 908, linked above:
"Although a husband and wife may file a joint bankruptcy petition whose bankruptcy estates are jointly administered, the estates are be treated as two separate entities for tax purposes. Two separate bankruptcy estate income tax re-turns must be filed (if each spouse separately meets the filing requirements)."
Thank you for all of your help!!!
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