NAVIGATING THE LATE TAX RETURN PROBLEM
Rediscover the lost art of human interaction.
Solo and small firm clients don’ t want to talk to a machine.
Which is why firms like yours rely on Ruby, the highly trained team of offsite receptionists who handle all your calls with the perfect mix of friendliness and professionalism.
With Ruby, you’ ll stand out from the competition by providing an exceptional customer experience delivered by a real, caring person.
866-611-RUBY( 7829) or visit callruby. com / nacba
Section 13-409 [ of Maryland laws) is not the equivalent of a return. Section 13-409 does not require any statement under penalty of perjury and could be satisfied by the filing an unsigned letter.”)
6 1 st Circuit, New Hampshire, Massachusetts, Maine, Rhode Island, Puerto Rico; 5 th Circuit, Texas, Mississippi, Louisiana; 10 th Circuit, Utah, Wyoming, Colorado, New Mexico, Kansas, Oklahoma.
7 Fahey v. Mass. Dept. Rev. 779 F. 3d 1( 1st. Cir. 2015); In re McCoy 666 F. 3d 924( 5th Cir. 2012); Mallo v. IRS 774 F3d 1313( 10th Cir. 2014). 8 A good summary of the current status of this argument may be found in Biggers v. Internal Revenue Serv.( In re Biggers), 528 B. R. 870( Bankr. M. D. Tenn., 2015).
9 Whether a substitute for return(“ SFR”) was filed is usually irrelevant … the SFR is not, without more, an assessment of the tax. The phrase often heard is“ an SFR assessment.” This is a misnomer; the SFR, per se, is blank and does not contain an assessment. The assessment, if any, comes later. 10 See, e. g., Coyle v. United States( In re Coyle), 524 B. R. 863, 867( Bankr. S. D. Fla., 2015)(“ The IRS’ s official position is that a late filed tax return can be discharged if it complies with § 523( a)( 1)( B)( ii) and if the filing takes place before an IRS Assessment.”); Wogoman v. IRS 475 B. R. 239( B. A. P. 10 th Cir. 2012); IRS Chief Counsel Notice CC – 2010 – 016( link to that notice is found at LateFiledReturn. com).
11 Beard v. Commissioner, 82 T. C. 766, 777-78( 1984), aff’ d, 793 F. 2d 139( 6th Cir. 1986). This rule prescribes 4“ prongs” that must be satisfied, including“… there must be an honest and reasonable attempt to satisfy the requirements of the tax law.”
12 See, e. g., Maitland v. N. J. Div. of Taxation( In re Maitland)( Bankr. N. J., 2015), In re Colsen, 446 F. 3d 836( 8th Cir., 2006); In re Davis( Bankr. N. J., 2015).
13 See, e. g., Cases based on the Beard test have often held that the late return was not filed in good faith and accordingly were invalid: Selbst v. U. S. Dep’ t of Treasury( In re Selbst), 544 B. R. 289, 2016 USTC P 50( Bankr. E. D. N. Y., 2016), Casano v. Internal Revenue Serv.( In re Casano)( Bankr. E. D. N. Y., 2012), In re Izzo, 287 B. R. 158( Bankr. E. D. Mich., 2002), Moffitt v. United States( In re Moffitt)( Bankr. W. D. Ky., 2013).
14 The 2-year period commences on the date the taxpayer files his or her tax return. 15 11 U. S. C. § 523( a)( 19). 16 Putnam v. I. R. S. __ B. R.__( E. D. N. Y. 2014); Ollie-Barnes v. Internal Revenue Serv.( In re Ollie- Barnes)( Bankr. M. D. N. C., 2014)(… the two year look-back period in § 523( a)( 1)( B)( ii) is similarly subject to equitable tolling under either Sections 105( a) or 108( c) because it is an indistinguishable limitations period from the period in Sections 523( a)( 1)( A) and 507( a)( 8)( A)( i).”) The author has found only 4 cases that address the issue, in New York, North Carolina, California, and Georgia.
17 11 U. S. C. § 523( a)( 1)( C). 18 You can find a consultation link at LateFiledReturn. com or DischargeTaxes. com.
16 CONSUMER BANKRUPTCY JOURNAL Spring 2017 National Association of Consumer Bankruptcy Attorneys