Bankruptcy and Tax in Athens, Georgia

Bankruptcy and Tax in Athens, Georgia

If you are an individual debtor in Athens, Georgia who files for bankruptcy under chapter 7 or 11 of the US Bankruptcy Code in , a separate ‘‘estate’’ is created comprising of property that belonged to you before the date of filing. The bankruptcy estate will be a new taxable entity, completely separate from you as an individual taxpayer.

A penalty for failure to pay tax, including failure to pay estimated tax, will not be imposed for any period during which a title 11 bankruptcy case is pending provided:
1. The tax was incurred before the earlier of the order for relief or (in an involuntary case) the appointment of a trustee, and
2. The bankruptcy case was filed before the due date for the tax return (including extensions) or the date for imposing the penalty occurs on or after the day the bankruptcy case was filed.

This relief from the failure-to-pay penalty is not applicable to any penalty for failure to pay or deposit tax withheld or collected from others and required to be paid over to the US government. Nor does it apply to any penalty for failure to timely file a return.

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Athens Georgia bankruptcy lawyer | Bankruptcy attorneys in Athens GA and Athens-Clarke County - Filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy