Bankruptcy and Tax in Bibb County, GA

Bankruptcy and Tax in Bibb County, GA

When you are an individual debtor in Bibb County, GA filing for bankruptcy under chapter 7 or 11 of the Federal Bankruptcy Code in , a separate ‘‘estate’’ is established consisting of property which belonged to you prior to the date of filing. This bankruptcy estate will be a new taxable entity, completely independent from you as an individual taxpayer.

There is no 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 petition 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 petition was filed.

This relief from the failure-to-pay penalty does not apply to any penalty for failure to pay or deposit tax withheld or collected from others and required to be paid over to the United States government. It does not apply to any penalty for failure to timely file a return.

---------------------
Macon Georgia bankruptcy lawyer | Bankruptcy attorneys in Macon GA and Warner Robins - Filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy in Macon GA

http://www.macongabankruptcy.com