Debtor Tax Returns

I am not a lawyer, I am Judgment broker. This article is my opinion, not legal advice, based on my experience in California and the laws are different in each state. If you ever need any legal advice or strategy to use, consult with an attorney.

In the judgment of law, how often must rely on court records from third parties, such as a bank for bank records, to discover where the judgment debtor's money comes from and where to go.

Ideally, you can ask the judgment debtor directly, a copy of their tax return (s) for your inspection. Unless you are in bankruptcy court, it can be a problem, because the judgment debtor's tax returns are usually paid, even if you have the subpoena served on the judgment debtor, to search them with a request for production of documents.

Not everyone puts the truth on their tax return. The IRS wants everyone to put the truth on tax forms, tax returns and says, "should not be subject to subpoena, or other people will lie down on your tax forms in order to avoid creditors."

Nothing stops you from claims for taxes on the judgment debtor's exam, and if your judgment debtor brings them, they are fair game for you to inspect and copy. However, if the judgment debtor or his attorney says, "that is privileged information, you can not", you will need to work around this problem.

The first workaround requires replacement information, such as paycheck stubs and W-2s, or getting your borrower voluntarily sign a form 4506-T. 4506-T form allows you to get a copy of someone else's tax return. One way to get your judgment debtor to sign the form 4506-T, if it can be a requirement for entry into the payment agreement, or some other type of settlement.

If you managed to get signed 4506-T, it is always much quicker to order a transcript (summary) of their tax returns, rather than try to get an actual copy of your return. And if their return is e-filed, only the tax return transcript will be available.

What if your judgment debtor uses an accountant to do your tax return? My non-legal opinion is that the tax preparer is a list and notes are detected in post judgment proceedings. They also argue that the accountant a copy of the judgment debtor's tax refund is visible, because the Internal Revenue Service Restructuring and Reform Bill HR 1998 (2676). This law introduced a very limited confidentiality privilege to non-lawyers. Internal Revenue Code Section 7525 (a) (1) 26 USC § 7216, includes a section (b), "according to court order." It is a condition for issuing the court order (in my opinion) satisfied by serving an extraordinary judicial review of the judgment debtor, which includes a document request to return.