Tax Refund Question

[tammygirl1]

If this is indeed the case, if your secured priority payments to them is being paid, when do you get refunded for the returns? Because if they do keep them it seems they would be double-dipping. So how does it work itself out?

Good question. CA State ears must have been ringing as when I got home we had a notice that our credit has been applied to balance due..So I guess my question now is will the State amend the POC they submitted or is my lawyer supposed to? The refund was slightly less than what we owe them. If the POC is not amended and the trustee pays out the original, do we get that difference back? Humm..

[FishersMike]

If you owe Fed/State taxes any refunds will be kept by the agency regardless BK

If this is indeed the case, if your secured priority payments to them is being paid, when do you get refunded for the returns? Because if they do keep them it seems they would be double-dipping. So how does it work itself out?

[enginegirl]

If you owe Fed/State taxes any refunds will be kept by the agency regardless BK

[tammygirl1]

Sorry I wasn't clear :-). I meant will the State and/or IRS keep it since we owe the back taxes although its in the payment plan to be paid in full during our 60 months...From what I hear if a refund is issued my trustee doesn't ask for it.

[enginegirl]

if you are paying 100% then usually no, however if you are paying only a percentage back then usually yes, they will want.. it all depends on your trustee.... (and mine wants every single one including all pay raises!)

[tammygirl1]

If we included both back taxes for Federal and State (paying back during our ch13) will they keep any refunds we get throughout our plan time? We haven't received a refund since we married in 2007 so not sure we will going forward but curious to know.
Also, My husband had not filed his 2006 taxes (thought they had been filed...) so they were submitted after we filed bk...will they keep this money? Its about 4k total..
Thanks