Bankruptcy Law — Rethinking the Discharge of Late Filed Taxes in Consumer Bankruptcy

28 Pages Posted: 15 May 2019

See all articles by Justin H. Dion

Justin H. Dion

Western New England University School of Law

Barbara Curatolo

Western New England University School of Law

Date Written: 2018

Abstract

The 2005 amendments to the Bankruptcy Code, Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) was enacted in order to improve bankruptcy law. However, BAPCPA has made the issue of whether late-filed taxes are dischargeable even murkier than before the amendments. After BAPCPA, some courts continued to analyze claims as they had before the amendment. Others used a “one-day-late rule” that prevented late-filed taxes from being dischargeable — even if the taxes were filed only one day late. This Article suggests a different approach. It argues that the legislature intended tax debt associated with late-filed income tax returns be dischargeable if the return is filed within two years of the due date.

Keywords: bankruptcy, Bankruptcy Abuse Prevention and Consumer Protection Act, BAPCPA, United States, income taxes

Suggested Citation

Dion, Justin and Curatolo, Barbara, Bankruptcy Law — Rethinking the Discharge of Late Filed Taxes in Consumer Bankruptcy (2018). Western New England Law Review, Vol. 40, p. 2, 2018, Available at SSRN: https://ssrn.com/abstract=3194769

Justin Dion (Contact Author)

Western New England University School of Law ( email )

1215 Wilbraham Road
Springfield, MA 01119
United States

Barbara Curatolo

Western New England University School of Law ( email )

1215 Wilbraham Road
Springfield, MA 01119
United States

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