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Tax Bill For 2014 After Ch.13 Filed

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    Tax Bill For 2014 After Ch.13 Filed

    Filed for and received Ch.13 status in 2014. Yesterday I received an huge bill from the IRS for taxes on income not disclosed during filing of 2014 taxes. There's no way I can pay this with the Ch.13 payments being so high. Any advice is appreciated.

    #2
    If it's related to 2014, then the IRS should be filing a claim reflecting the new amount, or the IRS will amend their existing claim. As to the impact of the new taxes on your plan payments, you will need to run all that back through the means test.

    Please realize that if you had disposable income on your Form B-22C Means Test, then any priority tax debt (IRS debt), would eat up that disposable income and go to paying the IRS.

    The only way to tell is to run the means test with the new numbers. Did you file pro se?
    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


      #3
      Originally posted by dwold31 View Post
      Yesterday I received an huge bill from the IRS for taxes on income not disclosed during filing of 2014 taxes.
      I hope you disclosed that income on your Chap 13 petition!
      LadyInTheRed is in the black!
      Filed Chap 13 April 2010. Discharged May 2015.
      $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

      Comment


        #4
        Originally posted by justbroke View Post
        If it's related to 2014, then the IRS should be filing a claim reflecting the new amount, or the IRS will amend their existing claim. As to the impact of the new taxes on your plan payments, you will need to run all that back through the means test.

        Please realize that if you had disposable income on your Form B-22C Means Test, then any priority tax debt (IRS debt), would eat up that disposable income and go to paying the IRS.

        The only way to tell is to run the means test with the new numbers. Did you file pro se?
        See, that's what is confusing me. They sent me a bill in the mail. They didn't file a claim with my Trustee or the courts. I have very little disposable income left over and I used an attorney, not pro se.

        The money was a one time deal, not part of a salary. I didn't get a 1099 and that's where the omission came from.

        Comment


          #5
          dwold31 there is something missing here. If you filed in 2014 and the IRS tax bill was actually for Tax Year 2014, then it is not subject to the automatic stay. The IRS would have only filed for 2013 or earlier taxes in your 2014 bankruptcy.

          You could ask that the court allow you to modify your confirmed plan to include the 2014 income tax issue. The problem that I really see is that you did not declare income for the Chapter 13 which is a requirement (remember, all disposable income). It reads as though this was not an insignificant amount of income.

          If you have an attorney, you need to speak with them immediately about addressing this issue. It is possible to include the taxes, but I'm afraid that you hid money from the Trustee and the Trustee may not be too pleased if this amount is significant. Please don't ask me what defines "significant", but some Trustees use a benchmark of 10%.

          I see that my co-moderator, LadyInTheRed , sees through this issue which I missed. I misread 2014 taxes versus 2014 filing.

          If you are Pro Se, then you'll have more work to do and throw yourself to the mercy of the court.
          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

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