Documents Required for the Debtor Audit

Posted on December 5, 2008 by Kevin Chern Esq.

Now that you know that your bankruptcy clients may be randomly selected for a debtor audit, the next order of business is a working knowledge of the types of documentation that the auditing firm will request.  The document categories for an audit are:

  • Federal income tax returns for the two most recent tax periods;
  • Depository and investment account statements for the month of filing and six months prepetition;
  • Payment notices for the month of filing and for six months prepetition;
  • Divorced debtors must submit the divorce decree, related property settlement, and support orders;
  • Self-employed debtors must submit documents for business operations from which the debtor receives an income.

After scanning the list above, you probably notice that you have already prepared and reviewed the documents in preparation for submitting the bankruptcy petition on behalf of your individual clients. Your next step is to simply keep the information of each bankruptcy client organized and available just in case one of your clients is chosen for an audit.

 

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