top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

Update on my IRS taxes

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Update on my IRS taxes

    The back story is we filed for BK in 2018, we hadn't paid the 2017 taxes, but the trustee paid it as a high priority.

    Each year we filed taxes. However, we always owe. When the 2018 taxes came due, we did not have the cash to pay it. Then the same thing happened in 2019 and 2020 and 2021. We had little to no disposable cash especially early in the BK.

    We owed taxes for 2018, 2019, 2020 and 2021. We made some small voluntary payments but didn't put much a dent in it. I was determined to pay off as much as possible before BK was scheduled to end April 2023. Then we had the lovely news that our BK13 was discharged EARLY, by almost a year. I was worried since we owed, but the IRS was surprisingly easy to deal with, however not all of the representatives on the phone are not as educated on the BK/discharge process. Even those who didn't have an answer were polite and really tried to help. After the discharge we were allowed to make a payment plan or to set a payoff of the entire amount in 6 months. We chose 6 months since it was cheaper (no extra charges), there's large charges to make a payment plan.

    Today we made the last 2020 payment and put $50 towards 2021. My personal goal for payoff is December before the holidays. We have until mid January.
    I am not an expert. I just share my experiences in the Wonderful Wacky World of Chapter 13! Filed 3-30-18 Confirmed 7-11-18 Discharged 6-8-22

    #2
    I'm glad that the IRS was easy to deal with. It will be a big relief when this is taken care of in a few months.

    Comment


      #3
      In bankruptcy, the IRS is shockingly easy to do business with.
      Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
      Status: (Auto) Discharged and Closed! 5/10
      Visit My BKForum Blog: justbroke's Blog

      Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

      Comment


        #4
        Originally posted by justbroke View Post
        In bankruptcy, the IRS is shockingly easy to do business with.
        This was all post petition non payment. I was worried at discharge they would be after us ASAP. But it was so laid back and when I called for my options it was all matter of fact and easy to set up!
        I am not an expert. I just share my experiences in the Wonderful Wacky World of Chapter 13! Filed 3-30-18 Confirmed 7-11-18 Discharged 6-8-22

        Comment


          #5
          Carmella, that is wonderful news -you'll finally be able to be current on those cruddy federal taxes!
          So far, we have been very lucky never to get behind and owe more than we could pay all at once.
          Most years, we got a decent refund even after my engineer husband calculated down to the penny early in the year and tried to change the allowances so we would get less money back. I think in Colorado we were always overcharged for the state taxes, but I'm not sure why we usually received a federal refund, even during the BK13.
          I am expecting a sizable IRS bill in 2023 because of the increased salary and the $2000 401K that went into default despite our best efforts to keep it paid up and avoid the penalties and fees we will owe next year.
          I will definitely post how it turns out, in case another forum user couldn't prevent a 401K default and is dreading the potentially expensive consequences.
          Of course, if any relocation costs that the Washington company didn't cover end up being eligible for a refund through the IRS, then that might offset what we owe enough to make that 401K penalty and raise not as devastating financially as we anticipate.

          Comment


            #6
            Something I eventually want to figure out is how much to have deducted extra to avoid having to pay as much when we file. Maybe it's a moot point if my husband decides to retire from full time work within less than 2 years. Maybe I should just wait it out. Our budget is still being adjusted and hopefully the beginning of next year we will have it set and include money set aside for property and income tax, etc. Once the garage repairs are paid and my husband has his own car we can get a better picture of how much money we are spending monthly. I am keeping my second job even though I feel like cutting back especially since I am trying to transition careers if I give up full time clinical work it would be nice to still do this other job that can be 0 to 7 hours a week and keep my clinical skills active. The extra income always helps now especially now that it is really extra income!!
            I am not an expert. I just share my experiences in the Wonderful Wacky World of Chapter 13! Filed 3-30-18 Confirmed 7-11-18 Discharged 6-8-22

            Comment


              #7
              Carmella I'm so glad to hear you are getting your tax situation sorted. You are well on your way to a new life and financial freedom!

              Comment


                #8
                @Carmella..yay, I’m glad you got this situation sorted out and the end is so close..talk to your payroll department for information on taxes..they can’t advise you but can give you general information.
                Filed Chapter 13 - 07/20/12
                Discharged 8/2/16

                Comment


                  #9
                  GREAT NEWS!! Made the last payment for the post petition IRS debt this morning! Met my personal goal to pay off before Christmas!! (it was due by January 18)

                  I didn't call for the pay off balance so hopefully what I paid is the final amount. I didn't have time this morning to sit home and call them. I will check the balance online next week it should be ZERO. If I owe a few dollars (interest) then I will call for the pay off amount.
                  I am not an expert. I just share my experiences in the Wonderful Wacky World of Chapter 13! Filed 3-30-18 Confirmed 7-11-18 Discharged 6-8-22

                  Comment


                    #10
                    Congratulations Carmella!
                    Latent car nut.

                    Comment


                      #11
                      Congratulations Carmella!

                      Comment


                        #12
                        Originally posted by Carmella View Post
                        GREAT NEWS!! Made the last payment for the post petition IRS debt this morning! Met my personal goal to pay off before Christmas!! (it was due by January 18)

                        I didn't call for the pay off balance so hopefully what I paid is the final amount. I didn't have time this morning to sit home and call them. I will check the balance online next week it should be ZERO. If I owe a few dollars (interest) then I will call for the pay off amount.
                        That's great!! Going into the new year fresh, what a relief that must be. Happy New Year Carmella

                        Comment


                          #13
                          Carmella, EhrMahGerd Congratulations!!! Party at Carmella's hooouuuse!! That, is So Awesome!

                          Comment


                            #14
                            Thanks everyone! Yep it's good to have the taxes paid off as we get ready to pay for 2022 LOL! Good news is that we ought to be able to pay them and not fall behind.
                            I am not an expert. I just share my experiences in the Wonderful Wacky World of Chapter 13! Filed 3-30-18 Confirmed 7-11-18 Discharged 6-8-22

                            Comment


                              #15
                              Originally posted by Barbisi View Post
                              Carmella, that is wonderful news -you'll finally be able to be current on those cruddy federal taxes!
                              So far, we have been very lucky never to get behind and owe more than we could pay all at once.
                              Most years, we got a decent refund even after my engineer husband calculated down to the penny early in the year and tried to change the allowances so we would get less money back. I think in Colorado we were always overcharged for the state taxes, but I'm not sure why we usually received a federal refund, even during the BK13.
                              I am expecting a sizable IRS bill in 2023 because of the increased salary and the $2000 401K that went into default despite our best efforts to keep it paid up and avoid the penalties and fees we will owe next year.
                              I will definitely post how it turns out, in case another forum user couldn't prevent a 401K default and is dreading the potentially expensive consequences.
                              Of course, if any relocation costs that the Washington company didn't cover end up being eligible for a refund through the IRS, then that might offset what we owe enough to make that 401K penalty and raise not as devastating financially as we anticipate.
                              And good news is, although we thought we were gonna owe due to the $2k 401K loan from the loathe-worthy company, we still got $$ a refund. So yes, loathe-worthy company, I present to you, my left, and right, middle finger.
                              Last edited by Zombie13; 02-05-2023, 03:55 PM.

                              Comment

                              bottom Ad Widget

                              Collapse
                              Working...
                              X