Madison County Georgia calculating taxes in bankruptcy law firm

Madison County Georgia calculating taxes in bankruptcy law firm

determing taxes in bankruptcy in Oconee County GA

The initial step in the determination of the tax due is filing a return. As an individual bankrupt debtor, you should submit a Form 1040 for the tax year involved, while the trustee of your bankruptcy estate must file a Form 1041. A bankrupt corporation, or a receiver, bankruptcy trustee, or assignee having possession of, or holding title to, significantly all the assets or business of the corporation, must submit a Form 1120 for the tax year.

After the return is submitted, the Internal Revenue Service may reassess the tax liability shown on the return. When the administrative remedies within the Service have been used up, the tax issue can be litigated either in the bankruptcy court or in the United States Tax Court.

The trustee of the bankruptcy estate may request a calculation of any unpaid liability of the estate for tax incurred at the time of the administration of the case by the filing of a tax return and a request for such a determination with the Internal Revenue Service. Except when the return is fraudulent or has a material misrepresentation, the trustee, the debtor, and any successor to the debtor is discharged from liability for the tax upon payment of the tax:
As decided by the IRS,
As decided by the bankruptcy court, following the completion of the IRS examination, or
As notified on the return, if the IRS does not:
Inform the trustee within 60 days after the request for the determination that the return has been chosen for examination, or
Complete the calculation and inform the trustee of any tax due within 180 days subsequent to the request.

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