Tax Return amended 2 years ago and a partial refund is due?

[bkandhappy]

I was asked this and wanted to post it here

If someone was discharged in 2018 and they filed BK ch7 before they filed their 2018 taxes they got a letter from the IRS a a few weeks ago that there was a mistake on their 2018 taxes, if the person amended their taxes they can get a partial refund.

With the BK case being 2 years old and discharged does the person need to inform the trustee that there was new money found for the estate or is the case closed and the person can keep the money. I thought i read somewhere that the case after 1 year is closed?

[justbroke]

Generally, any case can be reopened upon approval by a judge. There's a general one-year rule which makes a discharge more difficult to revoke, but I don't know whether it's worth it for the court and Trustee to deal with small amounts.

So if this is a small amount (don't ask me what defines "small") then it may be a non-issue. If the debtor is/was represented, they should ask their attorney and tell them the amount of this "partial" refund.

Welcome back.