Augusta GA Bankruptcy lawyers
Calculating taxes in bankruptcy in Augusta Georgia
The initial step in the calculation of the tax due is filing a return. As an individual bankrupt debtor, you should submit a Form 1040 for the tax year involved, and the trustee of your bankruptcy estate should submit a Form 1041. A bankrupt corporation, or a receiver, bankruptcy trustee, or assignee having possession of, or holding title to, substantially all the property or business of the corporation, should file a Form 1120 for the tax year.
When the rejavascript:void(0)turn is filed, the Internal Revenue Service may recalculate the tax liability shown on the return. When the administrative remedies within the Service have been exhausted, the tax issue can be litigated either in the bankruptcy court or in the U.S. Tax Court.
Unless the return is fraudulent or has a material misrepresentation, the trustee, the debtor, and any successor to the debtor will be discharged from liability for the tax upon payment of the tax:
As established by the Internal Revenue Service,
As calculated by the bankruptcy court, following the completion of the IRS examination, or
As displayed on the return, if the IRS will not:
Notify the trustee within 60 days after the request for the determination that the return has been selected for examination, or
Complete the calculation and inform the trustee of any tax due within 180 days proceeding the request.
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