Handing over income tax return payment

[TooMuchCredit]

My confirmation order does not mention having to submit tax refunds or returns, yet in January I got a letter from the trustee reminding me to submit my federal (no mention of state) return. It's not an official letter as its not on PACER. I did not have to submit returns for 2010 so not sure why all of a sudden it's being requested or if I am obligated to do so.

[spidge]

Has anyone actually sent the difference between a tax refund and a paid balance to the trustee?

What was the response?

[spidge]

So lets say I owed $100 to the state, but received $500 from the feds. Could I cash the check and send in the $400 with an explanation?

[LadyInTheRed]

My confirmation order does not mention having to submit tax refunds or returns, yet in January I got a letter from the trustee reminding me to submit my federal (no mention of state) return. It's not an official letter as its not on PACER. I did not have to submit returns for 2010 so not sure why all of a sudden it's being requested or if I am obligated to do so.

Pursuant to 11 USC § 521(g)(2), the trustee has a right to copies of your return and other financial information during your Chap 13, even if not stated in your confirmation order.

[LadyInTheRed]

So lets say I owed $100 to the state, but received $500 from the feds. Could I cash the check and send in the $400 with an explanation?

I don't think anybody here can really answer your question for sure. But, I think the worse thing that would happen is that the trustee would insist you send the $100. But, I have no experience to base that on. So, I still say ask your attorney. If my order said all refunds go to the trustee, I would send all refunds to the trustee unless I was advised otherwise by my attorney or trustee. $100 isn't worth any possibility of a hassle.

[Annmarie]

The very thing happened to us this year owed state got a refund from federal. Lawyer told us to cash federal check pay state and send lawyer the difference

[angel7821]

I say when in doubt check with your attorney and also look at the confirmed plan that is mailed to you. Just do everything you are supposed to do while in your plan and you won't risk getting it dismissed.

[TooMuchCredit]

Pursuant to 11 USC § 521(g)(2), the trustee has a right to copies of your return and other financial information during your Chap 13, even if not stated in your confirmation order.

Understood, but what's being said in this thread and others, is that if it's not in the confirmation order, it's not required.

[LadyInTheRed]

Understood, but what's being said in this thread and others, is that if it's not in the confirmation order, it's not required.

People say to check the confirmation order because in some courts the confirmation order will state that you have to provide tax returns every year. But, just because your confirmation order doesn't say that doesn't mean that you don't have to provide returns if the trustee requests them. Check with your attorney before deciding to ignore the request from the trustee, regardless of what anyone on this board tells you.

[Monday]

I'd also like to know about deducting state taxes. I can't believe I didn't remember to adjust my witholdings so that I wouldn't receive a refund...So, what happens to the money? Do my payments go down? Or, do the creditors just receive extra funds?

[witeout]

Our refunds ,state and federal, are kept at the govt level. We never receive them or have to turn anything over. We called the IRS once about the long wait for the refund and they said it takes weeks for them to research the case then they mail the $ to the trustee. I'm worried they will do this after our case closes. Though the refund is usually only $100 or so.

[flowerchild]

I'd also like to know about deducting state taxes. I can't believe I didn't remember to adjust my witholdings so that I wouldn't receive a refund...So, what happens to the money? Do my payments go down? Or, do the creditors just receive extra funds?

When I turned over my refunds it did not reduce the amount of my payments or shorten the length of my plan because I was not in a 100% payback plan. However, if you have some repairs (i.e home, car, etc.), your attorney can petition the courts to allow you to keep a portion or all of the refund once you provide the proper documentation. I was able to keep about 60% of my refund to repair my car which totaled about $1100 and I was fine with that.