Can I file a chapter 7 bankruptcy if I have not filed tax returns for 2005 income? I was paid in cash that year.
-- Anonymous
A.
There is no requirement that one's tax returns be filed in order to file Chapter 7. The debtor must provide the trustee with a copy of the last filed tax return or a transcript of that year from the IRS. Any taxes that are owed for 2005 would be a priority claim and not dischargeable in a Chapter 7 filed in 2007.
Of course, the fact that you were paid in cash does not eliminate your obligation to file tax returns.
