Post Petition Income Taxes...HELP!

[jcross46]

I filed for Chapter 13 last September. My attorney assured me that my 2005 income taxes (I expected a bill of several thousand dollars due to a 401k withdrawal) would be included in the plan.

Last month I got a note from the IRS saying they are not going to include it as a "post petition" claim, and I now owe the whole amount plus interest and penalties!

They were included in the plan when it was approved. Payments have been made to them. How can they suddenly back out of this?

I'm told that they are doing this to a whole bunch of people. Has anyone had this happen to them? Any legal advice?

My lawyer wants me to dismiss my current bankruptcy and start all over! GOD! Toss out 1 year of my bankruptcy, several months of plan payments (that mostly went to the lawyer and trustee), and start all over! THIS IS CRAZY! I need help quick!

[anonymuse]

I'd speak to the trustee directly and ask how can they do this? He/she should have paperwork to the contrary.

[SinkingFast]

Did you owe the IRS other monies from previous tax years?? They may be considering your Ch 13 plan payments as payments toward the old debts.

Seems to me that when the IRS accepted your proposed plan, that became an agreement to accept your payments to them within the Ch 13 plan.

I agree that it does not seem right that the IRS could up and change it's mind and demand you pay them outside the plan.

Instead of just rolling over and playing dead, your attny should be going to bat for you with the Trustee, the Judge, or whoever. What ever it takes. The IRS made an agreement and now they're not sticking to it.