Upon filing bankruptcy, taxpayers should do the following:
- Notify the Department of Revenue, Division of Collections
- Provide the bankruptcy case number
- Provide the date the bankruptcy was filed
- Complete and submit all previously non-filed tax returns to the Division of Collections
- File and pay any tax return that becomes due after the bankruptcy file date
All correspondence concerning bankruptcy should be mailed to the following address:
Legal Support Branch - Bankruptcy
Kentucky Department of Revenue
P.O. Box 5222
Frankfort, KY 40602
In compliance with federal law, the Department of Revenue discontinues most collection action against debtors involved in a bankruptcy. However, in bankruptcy cases filed by a corporation or LLC, collection action against officers or members may continue.
While each case is unique, most taxes survive bankruptcy. Debtors in bankruptcy should discuss any tax liabilities with their bankruptcy attorney.