IRS Notice of Intent to Levy rec'd on tax bill to be discharged in Ch7

[brokeinmichigan]

New to this forum...posted for the 1st time yesterday. Thanks to those who responded so quickly to that post. Anxiously awaiting anyone else's input. Another question, though:

Hubby rec'd, from the IRS, a NOTICE OF INTENT TO LEVY. This form was dated 3/19/07...about 3 weeks before our attorney filed our "no asset Ch 7" BK case. The form states that hubby has 30 days to respond to the IRS...that is TOMORROW!!! This is for taxes from 1996, so we were able to include them in the BK. He had been making monthly payments to the IRS for this for many years (payment arrangement of some sort), but stopped after the January payment, when we discovered it would be included in the BK.

So, my question is...should he call them and inform them of our BK filing, give them atty name, case #, etc.? Or should we let our atty handle that? Since this was sent before our case was filed, does it supercede our BK and take precedence? He owes just under $6K.

Also, what will they levy? Our home? Garnish his wages?

Hoping for some guidance today, as the 30-day limit is tomorrow.

Thanks in advance....

Hoping for brighter skies ahead....

[lrprn]

Past IRS taxes can be discharged in Ch 7 bankruptcy if the taxes meet all five of these rules:
- The due date for filing a tax return is at least three years ago.
- The tax return was filed at least two years ago.
- The tax assessment is at least 240 days old.
- The tax return was not fraudulent.
- The taxpayer is not guilty of tax evasion.

Since you included your husband's tax debt on your Ch 7 creditor list, the IRS has already been notified by your lawyer's office that you have filed bankruptcy and included the taxes. For peace of mind, you can call your lawyer first thing tomorrow morning to ensure the creditor notification letters have been sent (including the one to the IRS) and when.

Does your husband's tax debt meet all five rules for discharge? (Hope the answer to that is yes!) If the tax debt is dischargeable, then the IRS can't do anything and the tax debt will be wiped out. If it isn't dischargeable, then you can try to work out a new payment plan with the IRS. Since you will have more disposable income after wiping out your other debts, hopefully the IRS will be willing to work with you.

[brokeinmichigan]

Thanks again for your prompt response, lrprn~

Yes, his tax debt meets all of the rules for discharge...from 1996, filed in 1997or 1998, no fraud or evasion. I'm not sure what the "TAX ASSESSMENT" is, but our atty assured us that his tax debt was, indeed dischargeable.

I just want to be sure that the timing of notices, etc wont be a problem, since he rec'd this notice prior to our filing.

Thanks again!

Hoping for brighter skies ahead...