In 2006 we filed our chapter 13 case. The attorney we hired told us to increase our federal withholding allowances so that we would not have a tax refund for that year. We followed and increased our allowances to 10 which gave us a larger net income amount. The case was confirmed on the larger net amount. We were not told by the attorney at the end of the year to lower our withholding at all. The next January the nightmare started. I figured out our federal taxes for 2007 and we owed nearly $6800! Th next year we owed $3700 after all the belt tightening in the middle of the year.
I tried contacting the attorney. He would not take our calls, respond to our letters. I finally had enough and fired him. I hired a new attorney which helped us have a success discharge. She immediately contacted the IRS to have the debt included in our case. We also had to have our case modified because I had to quit work due to a bad shoulder injury and couldn't work anymore. In 2009, same thing but much lower amount was absorbed into our case.
Our case was successfully discharged in July 2012. It took a few extra months but we did pay off the plan. Today, after 9 months of peace we received a notice from the IRS that we owe $1600 for 2008. What? I thought we had paid off the debt in our case. I was on the phone for nearly 2 hours with the IRS. I also have a call out to my attorney. All she could advise me that this doesn't make sense. Also because the IRS can only go back 4 filing years to recover debt is what she thought.
The IRS is willing to accept installments. IRS says that we still owe money, which doesn't make sense for those years. We paid over $11,000 to the IRS for what should have been 2007 and 2008. Are we responsible for a paid off claim? Or is this a mistake on the IRS's part?
Thanks.
I tried contacting the attorney. He would not take our calls, respond to our letters. I finally had enough and fired him. I hired a new attorney which helped us have a success discharge. She immediately contacted the IRS to have the debt included in our case. We also had to have our case modified because I had to quit work due to a bad shoulder injury and couldn't work anymore. In 2009, same thing but much lower amount was absorbed into our case.
Our case was successfully discharged in July 2012. It took a few extra months but we did pay off the plan. Today, after 9 months of peace we received a notice from the IRS that we owe $1600 for 2008. What? I thought we had paid off the debt in our case. I was on the phone for nearly 2 hours with the IRS. I also have a call out to my attorney. All she could advise me that this doesn't make sense. Also because the IRS can only go back 4 filing years to recover debt is what she thought.
The IRS is willing to accept installments. IRS says that we still owe money, which doesn't make sense for those years. We paid over $11,000 to the IRS for what should have been 2007 and 2008. Are we responsible for a paid off claim? Or is this a mistake on the IRS's part?
Thanks.
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