in ch 13 getting tax refund back will they take it?

[wooisme]

I just find the whole thing very odd...why you ask? Because when I called the IRS to file my 2006 taxes and asked them if there is anything special I need to do since I filed chapter 13. Do I need to file my taxes a certain way like can i do this by efile and get the refund directly deposited, etc. Her answer to me was: We don't care that you filed chapter 13! You may file it any way you like and you can get your refund by direct deposit. She told me they do NOT hold up refunds , of course if you owe back taxes and you have the IRS on or apart of your plan, that's different.
I filed my 2006 taxes like i normally did and got my refund directly deposited. No where on my confirmed plan does it deal with nor does it talk about producing a copy of the return nor does it address turning over refunds. HOWEVER my income tax is part of my plan, meaning I pay in an extra $250 per month pro-rated for future refunds so that I can keep up to $3,000 in refunds. perhaps that's why. I'm holding my breath. I just checked the "where is my refund" and mine says your return is being processed, "you can expect your refund on march 11, 2008 unless there are mistakes or other taxes are owed. it has said that every single year tht i have filed.

[Flamingo]

I just found out that the IRS has forwarded my refund to my bankruptcy trustee. I filed bankruptcy individually, but filed a joint tax return. When I called to inquire if the trustee would release half the refund. I was told NO. I find that it is rediculous that they get to keep the refund when I am paying 800.00 per month for 3 years. We have car repairs and medical bills that have come up since filing the bankruptcy. Any ideas of what to do to get the trustee to release some of the money.

The trustee is keeping the refund because the refund is part of your BK financial house for the year in which you filed. It is additional income to you so therefore it falls in the control of the Trustee. If you filed a joint return, does your spouse have income listed on the joint return? If not, the trustee probably can keep the entire amount since the refund would have been based on your wages. Contact your attorney and check into that. Other than that, there is not too much else you can do unless you have an emergency house repair that the refund can take care of and you can request, via your attorney, for some funds to help out with repairs, etc. It doesn't matter what you pay into your plan per month, Trustees can keep refunds as many people finally found out although they read otherwise from people who get to keep refunds. But the main thing everyone in a Chapter 13 needs to know is that the Trustee is in control of your financial house during your Chapter 13 Plan, from filing to discharge. A lot of people don't like that but that is just the way it is.

[Flamingo]

I just find the whole thing very odd...why you ask? Because when I called the IRS to file my 2006 taxes and asked them if there is anything special I need to do since I filed chapter 13. Do I need to file my taxes a certain way like can i do this by efile and get the refund directly deposited, etc. Her answer to me was: We don't care that you filed chapter 13! You may file it any way you like and you can get your refund by direct deposit. She told me they do NOT hold up refunds , of course if you owe back taxes and you have the IRS on or apart of your plan, that's different.
I filed my 2006 taxes like i normally did and got my refund directly deposited. No where on my confirmed plan does it deal with nor does it talk about producing a copy of the return nor does it address turning over refunds. HOWEVER my income tax is part of my plan, meaning I pay in an extra $250 per month pro-rated for future refunds so that I can keep up to $3,000 in refunds. perhaps that's why. I'm holding my breath. I just checked the "where is my refund" and mine says your return is being processed, "you can expect your refund on march 11, 2008 unless there are mistakes or other taxes are owed. it has said that every single year tht i have filed.

The IRS only cares if you filed a Chapter 13 if the IRS is included in the filing for back taxes. In that event, your IRS information will be forwarded to their bankruptcy section. If you file a Chapter 13 and do not include the IRS, you should receive refunds as normal unless the Trustee has contacted the IRS (which many do as is indicated in the previous posting) to have the IRS send them your refund.

[krielly]

We included our debt to the IRS in our plan, but it has not affected any of our refunds. The IRS is being paid through the plan, but they do not hold our refunds.

I think it must be a decision of the trustee......not the IRS. And we all know how much that varies from district to district, state to state.

K

[papa0881]

they did not take it thank god, now the arrears are all paid now

[niknak22]

I have an update. I had my attorney file a motion to retain refund and it was granted. My husband did have income so I guess that's why they decided to grant it. I haven't received the money back from the trustee yet, and they did not confirm the amount that was granted, but I'm just happy to get some of it back. Do you think they will take the rebate that Bush approved?