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Tax return money on a Chapter 13

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    #1

    Tax return money on a Chapter 13

    I know we already covered this before on here. Im old and my memory is short. Anyway. started computing my taxes last night, still got some info to ad, however. It looks like so far we will get a return this year of around 2500 dollars or so. Question: I'm sure I know the answer. Does the IRS take my refund before it sends it to me knowing we owe from previous years? the IRS listed in the Chapter 13 plan. Or do they allow a check to be sent to me and I have to give it all to the trustee to pay to the IRS for what I owe? I we around that much anyway so if its more do they apply whats left to the other debts? Thanks for the help.

    Terry
    Tags: None
    #2
    More then likely the IRS will take the check before you even get it and apply it to back taxes owed. They have priorty over any creditor............

    You will probably get a stub showing where your money went.....
    Minny

    "It's amazing the paths that our feet sometimes follow in life".

    My suggestions are from "personal experience" and research only. Do not consider this as legal advice. Each bankruptcy case is different.

    Comment

      #3
      If you do not owe back taxes, do they still take your return?

      Comment

        #4
        will who take your return? IRS, no, if you dont owe abck taxes then the IRS cant take your return.
        Im not an attorney or a trustee. You cant trust me either though!

        [x] - Done with 341? Join the 60 Day Club! ___________[x] - Im Discharged! Whoo Hooo!
        [x] - Poll: Should I File Pro-Se ____________________[x] - New BK Law: Median Income, Means Testing and Presumptive Abuse
        [x] - Zombie Debt Collectors Dig Up Your Old Mistakes _-[x] - Bankruptcy Law Resource
        [x] - Need A Fast Answer? Available 24/7!--__________[x] - Dont Be A Hero On Your Budget - You Wont Get An Award!

        Comment

          #5
          We are probably going to deal with the "Owe" part for last year. The attnys have said fig our taxes before we file BK. If we get a refund (chance is slim to none) then we can dispose of the funds prior to filing. If we owe, filing the BK will put a Stay on fees and penalties associated not being able to pay the amount due. The the tax amount would be fixed at the actual amount owed and not increasing by the IRS 25% interest rate, plus any other fees or penalties.

          So in the future, when we file, any refund would automatically be applied to any amount we might owe?? At least that saves you from having to turn around and write them a check.
          Filed Ch 7 - 09/06
          Discharged - 12/2006
          Officially Declared No Asset - 03/2007
          Closed - 04/2007

          I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

          Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

          Comment

            #6
            im not so sure you dont pay 'fees and penalties' due to a court stay order. they cant try to collect on it. but i think the 'costs' still accumulate.
            Im not an attorney or a trustee. You cant trust me either though!

            [x] - Done with 341? Join the 60 Day Club! ___________[x] - Im Discharged! Whoo Hooo!
            [x] - Poll: Should I File Pro-Se ____________________[x] - New BK Law: Median Income, Means Testing and Presumptive Abuse
            [x] - Zombie Debt Collectors Dig Up Your Old Mistakes _-[x] - Bankruptcy Law Resource
            [x] - Need A Fast Answer? Available 24/7!--__________[x] - Dont Be A Hero On Your Budget - You Wont Get An Award!

            Comment

              #7
              I too also believe the penalties and fees will still accumulate - they just can't collect on it till after discharge.

              Also, am I understanding that you think you only have to pay on "back taxes owed" ONLY IF YOU GET A REFUND????

              After discharge the IRS can force you into a payment plan to get those back taxes paid...... because they are not dischargable in BK....... (in order to get them discharged you have to meet certain criteria).... and that's not often...
              Minny

              "It's amazing the paths that our feet sometimes follow in life".

              My suggestions are from "personal experience" and research only. Do not consider this as legal advice. Each bankruptcy case is different.

              Comment

                #8
                hehe i wish that was the case minny. wouldnt that be nice. claim 9 and give them pennies for life.

                i have heard that anything under $5000 the IRS will not put a lien on. dont know if that is truth. a lien is easy so i dont know why they do this if its true. anyway, the IRS will continue to collect starting usually 2-3 years after you dont file-but you owe or right away if you file and you owe.

                the IRS doesnst mess around. and i cant wait for them to be fired and abolished for flat tax system. i wont hold my breath lol.
                Im not an attorney or a trustee. You cant trust me either though!

                [x] - Done with 341? Join the 60 Day Club! ___________[x] - Im Discharged! Whoo Hooo!
                [x] - Poll: Should I File Pro-Se ____________________[x] - New BK Law: Median Income, Means Testing and Presumptive Abuse
                [x] - Zombie Debt Collectors Dig Up Your Old Mistakes _-[x] - Bankruptcy Law Resource
                [x] - Need A Fast Answer? Available 24/7!--__________[x] - Dont Be A Hero On Your Budget - You Wont Get An Award!

                Comment

                  #9
                  Will the Trustee want your tax return then, if you dont owe any back taxes?

                  Comment

                    #10
                    depends on when you file and if they do ask for it. its up to the trustee.
                    Im not an attorney or a trustee. You cant trust me either though!

                    [x] - Done with 341? Join the 60 Day Club! ___________[x] - Im Discharged! Whoo Hooo!
                    [x] - Poll: Should I File Pro-Se ____________________[x] - New BK Law: Median Income, Means Testing and Presumptive Abuse
                    [x] - Zombie Debt Collectors Dig Up Your Old Mistakes _-[x] - Bankruptcy Law Resource
                    [x] - Need A Fast Answer? Available 24/7!--__________[x] - Dont Be A Hero On Your Budget - You Wont Get An Award!

                    Comment

                      #11
                      Almost every year we've filed, we've gotten a refund. We don't owe any back taxes previous to the 2004 filing year.

                      Don't think refund will be the case this year, tho. Hubby cashed out his 401K turned IRA last spring so we could pay off the 2nd on the house. We couldn't remember what we did about taxes, so he called the investment firm. We didn't have any tax withheld from the distribution so we have boookooo additional income. Meaning we'll prolly owe taxes.

                      I guess I misunderstood the attny. I know for sure we specifically discussed the interest charges. I had a co-worker years ago who owed back taxes and he told me it was 25% or so interest that IRS charges. The attny specifically said BK would stop that. I thought he also said BK would stop any fees or penalties associated with the tax deficit if we had any as well. Maybe I got that part wrong. Another question for the new attny today!
                      Filed Ch 7 - 09/06
                      Discharged - 12/2006
                      Officially Declared No Asset - 03/2007
                      Closed - 04/2007

                      I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

                      Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

                      Comment

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