Case: Late Filed Return After Substitute for Return Considered Honest Attempt to File Return Allowing Discharge (Bankr. E.D. Cal.) (IRC §6020)

A return filed after the IRS makes a substitute for return and assessment can still be an honest attempt to file a return allowing for discharge of the tax debt, a bankruptcy court held. Prior to Debtors filing a late tax return, the IRS created a substitute for return which ultimately led to the IRS making as assessment. Debtors filed the return 18 months late and two years later claimed bankruptcy. The IRS adjusted the assessment to the correct amount after Debtors filed the return. Debtors contended that the amounts alleged to be owed for 2008, which was listed by ...