Taxes and Ch. 7 BK

[discgolfdc]

What is the name of your state? Kentucky

Hi all.

Since I'm most certainly not a tax expert, I figured I'd post here in the hopes that someone can accurately answer my question.

I was self-employed (single-member LLC) for most of 2004 and for the beginning of 2005. My business was not viable by the end of March 2005, so I closed up shop and filed Chapter 7 BK very shortly thereafter. I received my discharge letter in June or July of 2005 (I don't remember which, but it was in there somewhere.)

Now tax season is upon us. I have received 2 or 3 1099-MISC forms from some insurance companies that reflects income paid to my business prior to my filing Chapter 7.

I have earned income AFTER the filing and discharge, and I understand that I am fully responsible for any taxes on those amounts. What about the pre-filing/discharge amounts? Are those considered a part of the "Bankruptcy Estate" that is created pursuant to the IRS' Publication 908 (Bankruptcy Tax Guide)??

I don't know whether I have to amend my returns because I forgot about those. I have filed my returns reflecting any and all income POST-filing/discharge.

Anyone know about this?

Thanks!

Jayson

 

[LdiJ]

The LLC should have filed a final return, and issued you a K1 for any income or loss. You should have included that K1 on your tax return.

 

[discgolfdc]

Pass-through

The business was a single-member LLC - just me. In 2004, I filed a 1040 with a schedule C which reflected the loss for that year. The LLC never filed a separate tax return. It just passed through to me.

With that in mind, does it change your opinion on that, because I know nothing of having had to file a separate LLC return and having the LLC issue me a "K-1." I don't even know what that is, and I'm far from the dullest pencil in the pack.

Thank you. I do appreciate it!

JL