chapter 13 and the IRS

[maddog2112]

Does anyone know if the IRS is aware that we are in a ch 13? Will they scrutinize our return more closely? The trustee has sent us a letter saying he wants a copy of our return and whatever return sent to us.The only good thing about that is the bigger the return the quicker our total will be payed off. We`ve been in our 13 for one complete year and this is the first year for taxes and our yearly expense review from the trustee.Thanks for any help in advance.

[krielly]

Not sure if they are notified......unless you own them money which was claimed in the 13.
We did, and are paying our debt to them through the 13. They don't scrutinize it any more closely that I'm aware of.
We file electronically and receive our refund usually within 7 - 10 days.
The reason your trustee wants to see your returns is to monitor your yearly income to see if an increase in payment amount is warranted from what I understand.
We have been extremely lucky in that the trustee never asks to see returns or asked for our refund. We filed back in Oct 05.

[maddog2112]

Yes, you are very lucky. This is our first income tax year and our trustee made sure to send a letter asking for our refund should we receive one.This will probably be the last year we receive one for a while. I saw from someone else on this sight that they planned on applying their refund toward next years tax bill and continue that until the year they exit BK. Sounds like a good idea, but I`m not sure if that would actually be Kosher.

[Flamingo]

Does anyone know if the IRS is aware that we are in a ch 13? Will they scrutinize our return more closely? The trustee has sent us a letter saying he wants a copy of our return and whatever return sent to us.The only good thing about that is the bigger the return the quicker our total will be payed off. We`ve been in our 13 for one complete year and this is the first year for taxes and our yearly expense review from the trustee.Thanks for any help in advance.

The IRS will not be aware that you are in a Chapter 13 unless, as another poster stated, you have back taxes that are being paid to them by the Trustee and they are part of your Plan. Then you will become a part of the IRS Bankruptcy Section until after their discharge. If you do not have them listed in your Bankruptcy there is no reason to believe that you will be scrutinized more than a non-BK filer, unless you have items on your return that could flag an audit.

[krielly]

We are in the IRS Bankruptcy section, and I don't find any delays with our return. In fact, I just filed electronically last week and rec'd my refund 8 days later.
Wahoo!!!!!

[helpless]

Kreilly, you are lucky. We too get our refunds back, but ours has always been delayed because we had them included in bankruptcy. Have paid them back the priority claim (2 years ago) and only $32 on the original $46 remains on the unsecured portion. I wish that trustee would hurry up and pay that so it won't hold up our refund again.

[erinb1975]

It really does depend on your district/trustee. We filed electronically last week and I just got my refund today direct deposit. We also get to keep ours in our district (which is good cause that extra 1600 will come in handy as a bit of a cushion).