Ask your bankruptcy attorney about filing a Chapter 13
rather than a Chapter 7. Under a Chapter 13, only the last
three years of taxes are considered priority claims. The
ones older than 3 years have the same status as unsecured
credit card debt. Do not file the returns until after you
file your Chapter 13 petition, otherwise the 240 day rle for
assessability will come into play. BTW, priority claims are
interest and tan only, not penalties. Hope this helps.

JW

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- quote -

Where you start is to get to an attorney post haste! Get one
that specializes in Tax and Bankruptcy. Have him/her hire a
CPA to do the tax issues and fix what is broken.

You should have received a K-1 from the Trustee of the
estate for the distributions received.

One thing, if you owe ant taxes on ths stuff, they won't be
discharged in bankruptcy.

In any event, do it ASAP!

Bruce Raskin, CPA
Small Business and Individual Tax and Accounting Services

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Short Version:

(1) I probably owe taxes on two trust fund (grandfathers
estate) disbursements paid to me in 1995 and 2000. Didn't
realize/whatever : now I hear that the bank didn't tax it
for me (my fault on not verifying) as I believed. Not a
very good excuse, I know -- but I wish to come forward and
make everything right. Probably had $32K in 1995 and $33K
in 2000. Expect $15K in 2005 (and it's finished then).

(2) I did 1099 consulting work in 2000, 2001, 2002 and 2003
-- didn't report that income.

(3) Incorporated s-corp in 2003 and haven't paid taxes on
it's income. Books are shoddy.

(4) Personally haven't filed for 2003 yet, but don't expect
that to be a liable year as I was primarily W2/W4 and all
taxes were removed properly. Plan to file when extension
expires in August.

All other years FILED (1987 - 2002) properly [except where
noted above].

(5) I'm personally very close to bankruptcy (either 13 or
7). Financial situation never worse.

Age: 34, family (wife, 3 daughters). Have a house with some
equity ($40K) and a car (upside down).

That's it. Business aint' worth squat (it's my one man shop
computer consulting biz.).

.............

Need advice. Where to start. What to do. Thanks.

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