Amended Tax Returns

[justbaby]

I'm wondering what the trustees would say since I have to amend both my 08-09 tax returns due to me filing head of household erroneously. All done by a local tax agency...

Since I am having them amended, would that cause a problem or some type of red flad?

[starr4law]

Are you getting back or paying in when everything is said and done? Are you filed already, or had your 341 yet?

[justbaby]

Well because I had already filed and gotten nig refunds for both years, I will prob have to pay back. I have not yet file bankruptcy but will next week.

[starr4law]

You will need to get the amendments done before you file. Add the IRS and state taxes (if any) on Sch E (unsecured priority debt). List the amount divided by 60 onto your Sch I under other expenses. If you are needing to means test (the whole thing) it will automatically be sucked on to that (if you are using a program or an attorney - if not you will have to manually add it). Run a fake tax return to see if you are going to owe for 2010 in 2011 if you do not change your withholdings - if you are going to owe, get those withholding changed right away.

good luck.

[justbaby]

Gosh, I looked back at my reply post. I meant to say "big" refund...but the amendments are being done right now. I will probably owe back most of what I got back in refund in which my atty said they would include in the Chapter 13.

[starr4law]

I didn't realize that you are filing a Ch 13. Yep, they will go into the Plan (which is nice), but just make sure that you are appropriately withholding for the rest of the year so you don't owe next year and have to amend. Amending sucks

[justbaby]

I will..no more head of household for me! I'm married and should have known better myself! Thanks for the info!

[tigergem]

I'm guessing you will hire an attorney for your bk?

Just a heads up about the IRS, because it happened to me. Even if you file amended returns before you file bk, and even if you know for sure that you are going to owe them something, it can take a long, long time for the IRS to decide that you owe them anything.

If you file bk before the IRS has made a determination that you owe them something, your bk notice will go into "IRS limbo" - - they won't know what to apply the bk notice to, so they just won't apply it to anything. Because their computers run them, not the other way around.

So (again, assuming you are hiring an attorney) give your attorney the heads up to watch for the government claim deadline, and if the IRS doesn't file it's own proof of claim, you (or your attorney, perhaps) should file one for them. And if you do that before the government claims deadline, it will save you a big hassle getting the IRS debt repayment included into your plan. (Speaking from experience.)

Good luck!

[Flamingo]

We had large IRS taxes for 2001 that we needed to include in our April 2002 filling and had to scramble to get it all done prior to filing our Chapter 13. Your attorney will handle everything for you - you will need to get both amended returns finished (you may also have to amend your state taxes). We were instructed to put a copy of our BK filing on the top of both our federal and state tax returns for that year both sent in shortly after filing. Since your returns are amended your attorney will instruct you what to do when you send in the Amendments.. You will be placed by the IRS in their BK section and will probably be contacted via mail (just forward them all to your attorney) from that area address for the state in which you reside. It may take a while to straighten out, but that is what you retain your attorney for. Ours handled it all.

Your problem with everything may arise for tax years after you file. If you don't get it straightened out as to your filing status and withholding amount, taxes owed for the years after you file are your own rersponsibility.

Best of luck to you.

[justbaby]

Thanks, this is very good information! Thus far, I've hired an accountant to just do the federal taxes. At this point, my attorney hasn't mentioned state. I will probably go ahead and work on trying to get those amended as well just in case. I just don't want anything to hold up my process!