Income taxes

[queerguy]

Just wondering? What happens if your expecting a refund from 2005, but owe taxes for 2004. What will the trustee do, take my refund, and leave the 2004 tax bill for me to pay?

[AMISLANDER]

Here's what happened to me...

Just wondering? What happens if your expecting a refund from 2005, but owe taxes for 2004. What will the trustee do, take my refund, and leave the 2004 tax bill for me to pay?

I had already received my 2005 refund in the mail when, lo and behold, I received a letter the following week saying that I owed on 2004.

For my ch.7, the trustee requested my 2005 refund which I sent to him along with a letter stating that I owe the IRS for back taxes and they will have first right over my refund check. I have not yet heard anything from the trustee and that was all sent in July. In fact, maybe I'll give a call right now & see what's up. The FL trustee has never returned my calls yet. And like always, their answering machine is on...hmmmmm....

My attorney instructed me to send the refund check to the trustee with a copy of the IRS bill and send a copy of the refund check to the IRS along with the paperwork back to them so that they could file a claim.

I have heard back only from the IRS that there is a delay...of course there's a delay, that means more interest for IRS....

So, basically, I'm still in a holding pattern.

[anonymuse]

The IRS will not send out a refund check if you have outstanding taxes. They've got first dibs. And to make sure, when you fill out the forms, make sure you designate your refund to go to past taxes.

Also, I'm in one of those rare states where income tax refunds are exempt in Chapter 7s.

[AMISLANDER]

The IRS will not send out a refund check if you have outstanding taxes. They've got first dibs. And to make sure, when you fill out the forms, make sure you designate your refund to go to past taxes.

Also, I'm in one of those rare states where income tax refunds are exempt in Chapter 7s.

They have to prove first that you have outstanding taxes...that is what they told me...when it goes into back years, it gets sticky?

[anonymuse]

They have to prove first that you have outstanding taxes...that is what they told me...when it goes into back years, it gets sticky?

I had miscalculated my taxes for a few years back and was owed a refund. Last year, I owed taxes. So when I submitted the correction, I applied the refund to last years owed taxes and any overflow to this years taxes--which will make me break even this year.