103 Iowa L. Rev. 1729 (2018)

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Abstract

This Note explores an area of tension between bankruptcy and tax law. The question of when a tax return is dischargeable through bankruptcy is murky and controversial. The current statutory definition of a tax "return" is widely reviled because it is unnecessarily restrictive. This Note proposes redrafting the statutory definition of tax "return" to resolve the issue in a way favorable to debtors. Specifically, this Note proposes allowing a tax return to be discharged as long as it complies with applicable content requirements on its face. Unlike the current statutory scheme, this proposal would not prohibit the discharge of a tax return because it was submitted after either the passing of a statutory deadline or an independent assessment by a tax authority. This proposal also aligns with the purpose of the Bankruptcy Code- to give the honest debtor a fresh start.