Installment payments to IRS for back taxes

[tls]

I filed Ch 7 and have had my 341. All went well. I have an installment plan with the IRS for payment of taxes owed for 08 & 09. I have not made the payments since I filed (Oct 2010). Should I be continuing to make those payments or do I get a forbearance until discharged, then pick up the payments again? Has anyone dealt with this before?

[justbroke]

I filed Ch 7 and have had my 341. All went well. I have an installment plan with the IRS for payment of taxes owed for 08 & 09. I have not made the payments since I filed (Oct 2010). Should I be continuing to make those payments or do I get a forbearance until discharged, then pick up the payments again? Has anyone dealt with this before?

The IRS will file a claim and you will need to include the amount of the "priority unsecured debt" in your payments. The "priority" part will be listed in the claim. The priority part is the actual amount that you owe (principal) plus interest on the principal only. The "general unsecured" portion is the penalties plus the interest on the penalties. The "general unsecured" potion is dischargeable.

[biotechsolution]

Unfortunately the penalties will only be dischargeable is the taxes are over 3 years old. This comes into play if the taxes were more than 3 years old but you filed them late, within the last 2 years, the taxes wouldn't be dischargeable but the penalties would be.

[justbroke]

Unfortunately the penalties will only be dischargeable is the taxes are over 3 years old. This comes into play if the taxes were more than 3 years old but you filed them late, within the last 2 years, the taxes wouldn't be dischargeable but the penalties would be.

Nevermind. This is a Chapter 7. A little different behavior in a Chapter 13.

[AngelinaCat]

We had a payment plan with the IRS before we filed Ch7. We got a letter from them after we filed, that stopped our payments until after we were discharged. Once discharged, we got another letter from them saying that XXXXXX amount of dollars were owed for our back taxes. Much of what the trustee got from us because we were an Asset case, went to the IRS, as they were the primary debt we owed. (Caused by a lot of stupid mistakes on our part, none of which was old enough to be discharged.)

Anyway, once we were discharged, and got the notice from the IRS of what we still owed, 'Hub went online and reestablished our monthly payment plan. He has had to call them a couple of times and renegotiate the monthly payment to a lower amount, but he said that everyone he has dealt with has been very friendly, helpful, and professional.

[HHM]

I filed Ch 7 and have had my 341. All went well. I have an installment plan with the IRS for payment of taxes owed for 08 & 09. I have not made the payments since I filed (Oct 2010). Should I be continuing to make those payments or do I get a forbearance until discharged, then pick up the payments again? Has anyone dealt with this before?

Yes, in essence, because of the Bankruptcy Automatic Stay, your IRS payment plan has been suspended. As soon as you receive your discharge, you will want to contact the IRS (ASAP) and re-establish the payment plan. As was pointed out, given the recentness of the tax debt, you will still have to pay all penalties on the account (unless you get the IRS to abate the penalties).

[tls]

Thanks All. I know I still owe them and intend to pay--was just trying to clarify that I didn't have to pay until bk was final, then I planned to call and re-establish the plan. Sounds like I'm ok with calling them as soon as I get the bk discharge. thanks again!

[AngelinaCatHub]

Thanks All. I know I still owe them and intend to pay--was just trying to clarify that I didn't have to pay until bk was final, then I planned to call and re-establish the plan. Sounds like I'm ok with calling them as soon as I get the bk discharge. thanks again!

tls: Good for you. You got it right on. We were on a plan and actually "ordered" not to make another payment. Even if I went to the online payment system it was closed to me.

It is part of the 'stay'. Once discharged, you will get a demand letter. Don't take it too personally as with a call to the center, you simply set up a new plan. I went from $450 to $250 by request a year after we made faithful payments. Does not reduce but helped us in our lifestyle. Good fortune to you. 'Hub