Tax News

CCH (cch.taxgroup.com) reports:

  A Chapter 13 debtor who obtained an extension of time to file her tax return was not required to file her return before the first scheduled meeting of creditors or face dismissal or conversion. The government's claim that the case must be dismissed because the debtor failed to file her income tax return before the first creditors' meeting as required by section 1308 of the Bankruptcy Code was rejected. On the date of the first creditors' meeting, the debtor's income tax return was not yet due because she had obtained a six-month extension. Moreover, the government did not allege that the debtor failed to timely file for the extension or to properly estimate her income tax liability. The government also failed to represent that it terminated the debtor's automatic extension or that it had filed a motion for relief from the automatic bankruptcy stay to terminate her extension.

In re J.M. Cushing, BC-DC Mass., 2008-1 USTC ¶50,322

Other References:

 
Code Sec. 6871

  CCH Reference - 2008FED ¶40,630.108

  Tax Research Consultant

  CCH Reference - TRC IRS: 57,156