Even after a bankruptcy petition is discharged, a taxpayer is still liable for taxes for which a tax return was both filed late and filed within two years of the bankruptcy petition. In one case, a married couple filed for bankruptcy. They filed a tax return late, after they filed for bankruptcy. They believed their taxes were fully paid as part of their bankruptcy plan. The U.S. Bankruptcy Court disagreed. It found that taxpayers didn’t adequately show that they paid all their nondischargeable tax liabilities during their bankruptcy proceeding. Therefore, the IRS could continue, after the bankruptcy discharge, to enforce collection of those liabilities. (Campagna, Bktcy. Ct. NE, 9/19/19) Contact us www.mjscpa.com/news/
