Clarendon Hills Bankruptcy Lawyer Answers:Do I Have To File All Of M...

Although it’s a good idea to file all of your back taxes before you file a bankruptcy, it’s not technically required under the bankruptcy code.  Here’s what the law says.  For Chapter 7 cases you must provide your most recent federal tax return.  That is one year of federal tax returns, not two years, not three years, not four years, but only one year of federal tax returns.  So if you’re someone who has not paid your taxes or filed your taxes in the last five years and you’re looking to do a Chapter 7 bankruptcy, you only need to go and file that most recent federal return.  

The prior years are not going to be eliminated anyway because they’re not more than three years old and you didn’t file a return on time, and it hasn’t been more than 200 days since the debt was assessed.  However, if you go and file the most recent federal tax return you have in fact met that income tax requirement for Chapter 7 bankruptcy purposes.  There’s no reason to go back and file four years of taxes if you’re doing a Chapter 7 because you only need the most recent federal tax year filed. 

Now it’s a little bit different for a Chapter 13 in that you must file the most recent four years of federal tax returns.  So once again, if you owe five or six years of federal tax returns you really only need to file the most recent four to qualify and to satisfy that requirement under the bankruptcy code.  

It’s always a good idea to file your taxes.  It is the law.  It’s always a good idea to file your taxes on time and make sure that they’re accurate and use a reputable service if you cannot do it yourself, but you do not have to file your back taxes just to qualify for bankruptcy other than one year, the most recent year under Chapter 7 or four years, the most recent four years for Chapter 13 bankruptcy purposes.