straight from horses mouth re: tax refund

[nervousnellie]

Not all are just 1040 EZ preparers

We have classes available to take on Bankruptcy.We refer these client's to the Premium office's.I used to work in a Premium office
and handled those type of returns myself.I have since chosen to move to a regular type office closer to my home.So now I refer those client's to that office.Preparing those type returns with a 982(Tax Attribute's form and Statement of discharge of debt income) are too time consuming. I have seen prior year returns prepared by other firms where the client has paid taxes when they shouldn't have, didn't get all the credits,deductions,etc.they were entitled to. Like the IRS says Taxpayer's should use diligence in choosing a qualified preparer! We have Bio's on our web site showing our years of service,level of certification and our area's of expertise.

[stljohn]

Ok HHM " After all he works for H&R Block"?What exactly do you know about H&R Block?
What kind of statement is that? You don't think they hire certified accountants? What about Enrolled Agents?
Let me educate you. I have worked for 23 years for "H&R Block".I am an Enrolled Agent.There are several other Enrolled Agents in my office and District,and many more across the country. We take and are required by the company and the IRS to take SEVERAL hours of continuing ED. each year.Most E.A.'s and other preparer's take more than required because they want to be able to prepare an ACCURATE tax return and help their client's with their tax and financial situations.I'm not saying there are not SOME who give the wrong advice or screw up a tax return,I have made a few mistakes in my 23 years, after all I am human, but I have learned from those mistakes.And I agree there are a few who need to get out of the business,but Please do not judge us all by a FEW.

My old man was an HR preparer for many years until he went on his own and HR training is good and there are some really diligent preparers who really know the tax laws inside out.

But BK laws are not a part of their training and if they give you bad advice they aint responsible so its irresponsible for them to give any such advice.

[JollyGG]

Your post was very helpful thank you. If you don't mind what district do you live in? I wonder how much our exeption is? In the paperwork our Trustee gave us it didn't say anything about $ amounts or exemptions it just says "your refund will be sent to you , not the Trustee".

Thanks again!

I am in South Dakota's eastern district. We have a flat 10k exemption for basically everything but homestead. I had about 2k left of that and I used it to protect as much of my refund as I could.

[$$only4ever]

I have received my refunds for the past 3 years with no problems. I did file under the old law and my trustee did not want copies of tax returns or refunds. My attorney just advised me to file the "old fashioned way". Paper process and receiving a check in the mail.

[Granny]

he works for H&R block...I don't think they even hire certified accountants.

You got it close, HHM, but backwards. No self respecting CPA would even apply to work for them, including those of us in bk and unemployed.

[doglover]

We got a check in the mail for the exempt portion.

Your post was very helpful thank you. If you don't mind what district do you live in? I wonder how much our exeption is? In the paperwork our Trustee gave us it didn't say anything about $ amounts or exemptions it just says "your refund will be sent to you , not the Trustee".

Thanks again!

[doglover]

I checked and it says IRS has "REJECTED" my e-file process. It said I have to print out my return and mail it in. So I called the Bankruptcy Dept. at the IRS and they told me that because the DISTRICT I live in there is a code or freeze on my account. So now they are telling me I have to mail in my return and then they will mail or direct deposit my refund. So I guess I'll get my refund in about 6 months, lol.

[arkienurse]

A very good answer and right on the money.

This tax person is an idiot...after all, he works for H&R block...I don't think they even hire certified accountants.

I know Jackson Hewitt has some clueless people, not saying they all are, but.... We were going to use them last year because I got a very small stock pay out. I had tried reading on the IRS site on how to do it, but wasn't sure on something, so we thought, the tax preparer will know how to handle this. Wrong. I might not have known what to do, but how they were going to put it down was the one way I knew for certain was incorrect. After a brief argument we gathered our papers and left. I did it on turbo tax and still am not sure if I did it right or not, but the amount was only $400, so I figure even worse case would be half of that if anything comes up.
This year, I am about to start looking for certified CPA's, as I had another involuntary stock cash out, but this was quite a bit larger amount than $400.

[wooisme]

I personally Called the IRS and they don't care how you file it they said. UNLESS you owe them money or it's coming out of the plan to pay them, etc. but i asked them how should i file it and they said you can file it any way you want. we don't care that your in chapter 13...it makes no difference to the IRS if you are or not.

so since it said nothing in my plan about how to file it, etc. i filed my direct deposit and got my refund in two weeks last year.

in my confirmed plan it says nothing about taxes at all, it doesn't say that he wants to see them or nothing, it doesn't say anything about sending them in either. in his handbook, all it says is to have it on hand IF it's asked for.

[woeisme]

I'm confused because I see several people on here say they had their refund electronically deposited to their bank account. My trustee allows me to keep my refund, but it was my understanding is that it is the law , not something trustee or district dependent, that if you are in an active BK, you can't do electronic deposit of the tax refund, in fact I remember my trustee telling me that is the only difference I'd notice when I did my taxes this year. Am I just making this rule up, or has someone else seen it and know what I'm talking about?

[chpxiii]

Since this seems to be district specific, I'll chime in with my experience in Dallas, TX with Tom Powers chpt. 13 trustee: my one and only tax refund went directly to the trustee. Since it was less than $2k, I got the full refund.

I have tried very very very hard not to have a refund come back and at the end of the year to actually OWE money to the IRS. I didn't want the trustee's grubby little hands all over my refund.

[JollyGG]

My tax return was sent directly to the trustee. Here is how that process worked.

1. The trustee sent a letter to the IRS stating that I was in an active bankruptcy and they had the right to my tax return under X, Y, and Z. I was also sent a copy of this letter.

2. The IRS complied with the trustee's demand for my tax return.

3. Since a large part of the return was exempt and needed to buy a vehicle, our lawyer sent a request to the trustee to expediate the payment of our exempt portion.

4. We got a check in the mail for the exempt portion.

Different districts handle this differently. However, as you can see there was advanced warning that my tax return would be sent to the trustee. Moreever the trustee had to contact the IRS and request the return it was not sent to them automatically.

[doglover]

Quote:
that info more likely came from the other end of the horse

A very good answer and right on the money.

This tax person is an idiot...after all, he works for H&R block...I don't think they even hire certified accountants.

The tax refund issue is "district" specific. In some districts, debtors are required to sign a release allowing the trustee to intercept all tax refunds, in others, no such thing happens.

.....Ok HHM " After all he works for H&R Block"?What exactly do you know about H&R Block?
What kind of statement is that? ......but Please do not judge us all by a FEW.

I agree nervousnellie!

I was just trying to be helpful with this thread. OF COURSE it is case by case and def. goes by what district you are in but I thought we all knew that and I didn't have to include that in my original post.

I filed under new law in Western District of Texas. If anybody wants to know how I receive my taxes, when I do get them, just email me. Trustee said in OUR district we DO get our refunds, but sometimes it goes direct deposit and sometimes mailed. I guess whatever the person handeling your refund in special procedures dept. feels like doing that day, lol.

[cso5@]

Maybe district specific, but that's how mine went

Just to add my 2 cents here --

My refund last year was my first in my bankruptcy. I called and asked about the state one -- the federal one seemed to be processed in the "normal" time.

The state tax agency I called said it was waiting for the trustee to give permission to release it --

Maybe the federal government is the only thing out there more efficient then the completely bloated NY state government!

Then the refund was released and deposited in my checking account -- it wasn't a lot of $$, maybe $500. I have done what I can to minimize my refund.

I used TurboTax online and my crammed down car in financed by HSBC. So that is in the plan. AND I have money owed to the state for taxes and old state school tuition, all part of my plan. I have federal taxes owed too, and they are part of my plan. My plan is not a 100% repayment plan. More like 5%.

[wooisme]

I filed using turbo tax under the new law and filed direct deposit in which I got my refund directly deposited into my account within the two week period of time.

However I have to stress that in my plan the way it's set up, I pay an extra $256 per month in advance so that I can keep any refund amount up to $3,000 anything over that I would need to surrender to the trustee.

I don't know about H & R block but I do know that Jackson Hewitt does not hire certified accountants. Only because I myself am not a certified accountant and they wanted me to take their tax course to help people during tax time.