New Tax Bill after filing CH 13

[Megatron]

My '08 tax return was reviewed in July of '10, and it was found that I owe a substantial amount more than my return reflected. I filed CH13 in December of '09.

Does the IRS just file a claim like everyone else?

Does my 60 months become 65 months?

Any advice would be most appreciated.

[despritfreya]

The IRS should be amending its claim to include the additional tax as a priority debt. This should prompt your Trustee to notify you and your attorney that the Plan is not sufficiently funded. If your Plan has been Confirmed, you will have to file a Modified Plan or Amend the Order to provide for the tax. If your Plan has not been Confirmed, the additional tax will be added to the Order Confirming and your payments will be adjusted accordingly. Your Plan cannot go past 60 months and all priority claims must be paid in full unless the creditor agrees otherwise, which is not going to happen.

[Megatron]

Thank for the information despritfreya.

[catleg]

If the plan has enough money in it, the IRS will get more and the unsecured creditors will get less. For most folks this arrangement is satisfactory. Essentially you get the IRS off your back for free.

[Megatron]

Thanks catleg.