Owe IRS during Active 13

[minan]

The IRS allowed us to add additonal taxes owed into our Chapter 13 repayment plan after we were already confirmed and into it for almost a year. But, the state taxes could not be added in and we've been paying $150 a month for a year now. Last payment is next month! woohoo! Don't know why the state was such a pain to work with but the IRS was actually great. Not a problem...
This year we are able to pay it in full but I'm waiting until the last minute!

We had the same issue and called our local IRS rep to file a 1305 claim. They did that day and now our 2010 tax is included in our plan. State did not do this. Meeting with atty next week to figure out how to pay the state. We don't expect this to happen next year as we believe our withholdings will result in breaking even.

[IamOld]

Thanks to all!

Can I be dense and just ask this - HOW physically did you ask the IRS? Did you call them on the phone, are there forms, etc??? During the 13??

[Flamingo]

We filed chapter 13 in 2009 & included federal & state taxes that were owed which are included in our Chapter 13 payment. When we filed taxes in 2010 we owed federal taxes again.

We are now on a payment plan with the IRS for the 2010 taxes, so not sure why Flamingo feels "it is not allowed". The IRS sent us papers & we had to sign them, & pay $100 monthly directly.

I did not state "it is not allowed" - the IRS will give you a voluntary plan if you are already paying them for taxes owed in your plan as it considers a Chapter 13 a "payment plan" if it includes taxes as they are being paid back in payment plan form. The IRS does not "allow" two payment plans at one time. We filed in 2002 and included taxes owed for 2001 in our Plan. We ended up owing federal taxes for tax year 2004 in the amount of $1500 due to a payment to me of owed vacation and sick time from a former employer which went bankrupt. I was allowed to keep those funds by the Trustee and withheld taxes but it was not enough. We submitted a payment plan to the IRS for the amount owed and included a check for $50 per our attorney's instructions. The IRS got back to us and advised us they would not allow us to have another "plan" since we were paying them for tax year 2001 in our Chapter 13 Plan. We had to work through their Bk section to set up a "voluntary" plan where we would send in a monthly payment of whatever we could to offset the taxes...interest and penalties would accrue during that time. We paid off the balance after discharge but then got hit with the interest and penalty bill from the IRS.

There have been many other posters in this forum who have gone through the same thing. If grndmom53 is correct, maybe the IRS is starting to change it's ways as to this practice.

If one owes taxes after filing, it is best to always first check with one's Chapter 13 attorney as to what to do and if one has a tax professional in the family or always works through one as to taxes, consult them.