IRS Letter

[bankruptbull]

I am curious about something. I am in a chapter 13 and owed back taxes to the IRS and state. The IRS has already filed a claim - they have a priority claim and a non-priority claim according to NDC. I am currently separated from my wife and have been for about two years. The taxes that were back taxes and are part of the bankruptcy case were filed jointly - for the last two years we have not filed jointly. Yesterday I got a letter at the house from the IRS addressed just to her, I didn't open it of course, and let her know it was at the house so she could pick it up.

This has me curious. Would they be coming after her for any portion of this?

[justbroke]

The IRS typically doesn't go after anyone for tax debt that is included in the Chapter 13 Plan. There are so many reasons your estranged spouse could be receiving a letter from the IRS. In fact, your spouse may have filed what is called an "Injured Spouse" claim so that the back taxes don't affect any refund which may be due to that spouse. Actually, the IRS would be precluded, by the automatic stay, from offsetting any future refund for taxes included in a Chapter 13 plan.

I don't know what to tell you about the letter. It could be too many things other than something to do with the taxes that are included in the bankruptcy plan.

You may be "just" curious enough to ask her what the IRS wants or is communicating through the letter.

[LadyInTheRed]

Yes, they may be trying to collect your joint taxes from her. I wasn't sure if the co-debtor stay applied to taxes so I googled it and found the following in the IRS manual for collection officers:

Additionally, creditors are stayed from collecting from co-debtors on consumer debts (11 USC § 1301). Consumer debt is defined in 11 USC § 101(8) as debt incurred primarily for a personal family or household purpose. Tax liabilities are not included in the definition.

https://www.irs.gov/irm/part5/irm_05-017-011.html#d0e466

[LadyInTheRed]

The IRS typically doesn't go after anyone for tax debt that is included in the Chapter 13 Plan. There are so many reasons your estranged spouse could be receiving a letter from the IRS. In fact, your spouse may have filed what is called an "Injured Spouse" claim so that the back taxes don't affect any refund which may be due to that spouse. Actually, the IRS would be precluded, by the automatic stay, from offsetting any future refund for taxes included in a Chapter 13 plan.

I don't know what to tell you about the letter. It could be too many things other than something to do with the taxes that are included in the bankruptcy plan.

You may be "just" curious enough to ask her what the IRS wants or is communicating through the letter.

I saw that after I posted my response. While the IRS apparently disagrees that the automatic stay prevents them from collecting, I have no idea what they typically do. I agree with justbroke that the letter could be for any number of things.

[bankruptbull]

Thanks - I will definitely ask her. Was just curious mostly. I do know that she is currently in an installment agreement with them for back taxes since the separation but as far as I know those letters go to her address. This one was interesting to me because it came to the joint filing address, not the one she currently resides at. I'll update with what I find out.

[justbroke]

In my personal experience, the IRS has not gone after my spouse for joint taxes included in the Chapter 13. However, my spouse remained unemployed so maybe they had no recourse for collection. At least that's my experience with this issue.