IRS Refund

[justbroke]

I owe the IRS several thousand dollars in back taxes from 2005. This was due to missing 1099s. One of the 1099s I should have never received (a rebate from the Sale of one of my houses). I finally got that one fixed on $3K of taxes!!!

Anyhow, I still owe the IRS several thousand dollars and I filed for my 2008 income taxes. I was expecting a refund of several thousand dollars. My plan pays the IRS back over 60 months. I was figuring the IRS would use their right of set-off, or at least freeze my refund, since I owed them.

Nope... I got my refund back electronic deposit 8 days after filing.

How I have to talk to the Trustee to see if she wants the whole thing. Just wanted people in Chapter 13s to know that there are specific rules preventing the IRS from keeping your refund when you're in a confirmed Plan (which pays any IRS back taxes)! They can't just set-off. They are still subject to the Automatic Stay. They can freeze your account, hold the refund, and then file a motion for relief from the automatic stay, in order to apply the set-off. Usually, this is too much trouble for them, so they just let the refund go through.

So, hopefully, the Trustee will let me keep some of it!

[dingdong]

Sending good vibes for a financially well off Trustee that has an aversion to tax refunds!

[justbroke]

Thanks dingdong. What about your discharge and close?

[dingdong]

Stll waiting....

But no objections on PACER, which is nice, so I will just have to be patient for a few days. They seem to discharge fairly quick in my district once your 60 days arrives.

It would be nice if you were able to keep your TR, kinda like Christmas in March!

Here's hopin!