Tax owed after filing

[HLS]

I am not sure if I asked this yet, but if you owe money to the IRS and they do not allow you to set up a payment arrangement because of your chapter 13 bankruptcy, what do you suggest I do? I increased my withholding so they could keep my refund next year and I plan on sending them a little bit money whenever I get paid.

[Carmella]

You can go online and make voluntary payments. This is what I did. If you are married make the payments under the social security number of the person whose name is listed first on the income tax return. I didn't know that and our payments went who knows where until they found them for us! Keep track of how much you owe and how much you paid because you will not have online access to that information.

You can probably make payments by mail if you check out the website for that info. It was easier for me to do it online.

The IRS won't try to collect until BK is discharged. Even when our BK was discharged we were able to set up an agreement to pay it in full in a designated time period with minimal fees/interest. The payment plan is very expensive IMHO. We owed for a few years and I had everything up to date except the most current taxes when we were discharged. It took quite a while for the IRS to recognize that we were discharged. I don't remember the time frame, but it moved very slow and we couldn't set up the payment agreement until the IRS updated their records to show we were discharged.

If you ever have to call the IRS I recommend calling when the first open, but not the day before or after a legal holiday, remember the newer federal holidays that must of us don't get off from work. My experience was the more experienced workers took long holiday weekends and even though the newer workers were nice, they couldn't answer my questions.

[ConfusedPeet]

We recently were audited and owed over $8000. We are on year 2 of our Chapter 13. I called my lawyer and it is being included in the plan. I'm not sure if that's an option for you. The lawyer said it depends on the type of IRS debt.

[MyAZLawyers]

Under Chapter 13 bankruptcy, the IRS typically cannot pursue collection actions if your tax obligation is included in your repayment plan. However, if the obligation isn’t included or if any issues arise, entering into a payment agreement or setting up a structured payment plan might be a viable solution. Additionally, adjusting your withholding can help reduce the amount of tax liability for the following year, providing a proactive approach to managing your tax responsibilities.

[Carmella]

Under Chapter 13 bankruptcy, the IRS typically cannot pursue collection actions if your tax obligation is included in your repayment plan. However, if the obligation isn’t included or if any issues arise, entering into a payment agreement or setting up a structured payment plan might be a viable solution. Additionally, adjusting your withholding can help reduce the amount of tax liability for the following year, providing a proactive approach to managing your tax responsibilities.

FYI:

Unless things have changed in the last few years, the IRS will not set up a payment plan with anyone that has an active BK 13. They did allow voluntary payments. You have to more less set up your own "unofficial" payment plan. If you want to know your balance it cannot be accessed online *unless things changed* but you can call and talk to someone in their BK department.