Income Tax Turnover Order

In Idaho, every bankruptcy case is subject to the income tax turnover order.  This means that once your case is filed, you have an affirmative duty to turn over your annual tax filings to your case trustee while your case is open and pending.  Some debtors mistakenly think that once their 341 meeting is over they are exempt from this requirement.  They are wrong.  Even if the trustee neglects to ask for them, you are still required to turn them over, along with 100% of any refunds.  Debtors may not discount or deduct credits from the refund check beforehand.  If the trustee determines the debtor is entitled to any creditors, he or she will mail the debtor a check in due time.  Failure to obey this order can result in very severe penalties, including loss of discharge and case dismissal.