The Short Answer
When you file for bankruptcy, you'll need to provide the last four years of federal and state tax returns. If you don't have copies, you can get them from your accountant, the tax preparation service you used, or directly from the IRS using Form 4506-T (a free transcript) or Form 4506 (an actual copy for $57). For North Carolina state returns, you'll need to mail a written request to the NC Department of Revenue — there's no charge for those copies.
When filing for bankruptcy, you are required to submit the last four years of both your Federal and State tax returns. While you may be a good record keeper, many people discover that they do not have copies of all their tax returns. Fortunately, there are several ways to obtain prior year returns.
If your accountant prepared your returns you can request copies from him/her. The same is true of the national tax preparation companies and franchises. Although each company may have different policies, most will keep copies of the last three years on site and can easily retrieve previous years’ returns for a nominal fee. In some cases, if you filed taxes at a tax preparers’ physical office you must pick up the returns in person and show proof of ID. Returns cannot be emailed or faxed to you and they will not be released to third parties in compliance with current privacy laws.
If you prepared your returns yourself on one of the online tax preparation sites, their back-up service allows you to access, view, and print your returns after tax season. Previous years are available for returns that were e-filed and accepted. Rates can vary so check with the site you used regarding their fees.
Of course you can always go directly to the source and request copies from the IRS. This can be done by going in person to your local IRS office. Again proof of ID is required with a picture ID. The IRS employees can print off a copy of your transcript while you wait. For an actual copy of your tax return go to the IRS website www.IRS.gov and download Form 4506. A copy of your tax return will cost you $57.00 and will be mailed to you in about 60 days. If you can’t wait for 60 days or don’t want to pay $57.00 then download the Form 4506-T and request a transcript of your return. The transcript provides the same information you filed on your tax return, i.e. proof of income and filing status, and are accepted by most bankruptcy attorneys in lieu of the actual return. Also, you may be able to contact the IRS and have them fax your tax records.
Copies of your NC State income tax return can be obtained by written correspondence only. The tax payer must mail a letter to the NC Department of Revenue, Attention: Correspondence Unit, P.O. Box 1168, Raleigh, NC 27602. Requested tax returns must have been previously filed and include your Social Security Number. There is no charge for the requested tax returns. The NCDOR contact info is (887) 252-3952 or www.dornc.com.
Key Takeaways
- Bankruptcy requires you to submit the last four years of both federal and NC state tax returns before your case can move forward.
- The IRS Form 4506-T gets you a free tax transcript that most bankruptcy attorneys accept in place of the full return — and it arrives faster than the $57 official copy.
- If you used an online tax prep service like TurboTax or H&R Block, you can likely log back in and print prior years' returns at little or no cost.
- NC state tax return copies must be requested by mail to the NC Department of Revenue at P.O. Box 1168, Raleigh, NC 27602 — there is no fee, but plan ahead since it takes time.
- Your accountant or tax preparer likely keeps copies on file for at least three years and can provide them, though some offices require you to pick them up in person with a photo ID.
Attorney Insight
The mistake I see most often is clients waiting until the last minute to track down their tax returns — then discovering it takes weeks to get them from the IRS or the NC Department of Revenue. That delay can hold up your entire filing. My advice: request your transcripts from the IRS online the same week you decide to pursue bankruptcy, even before your first appointment with us. The IRS's Get Transcript tool at IRS.gov is the fastest route, and a transcript is virtually always accepted by the trustee in place of the original return.
