Owe money to IRS...

[Blue14]

We were discharged on 8/11/08 with Ch7. We owe $2201.86 for Federal before we filed BK. The IRS sent the letter showing the amount we owed and I contacted them to say we are filing BK and they didn't send any more letters to collect money. Do we still owe this money to the IRS for Federal Income Tax?

We also owe the State $712.79 as well. I can't remember if I contacted the State to let them know we filed BK, but I now have a letter dated 8/13/08 showing we owe the balance of $712.79 for State Income Tax. Do we owe this money too?

Please help.....I called our attys office and left a message on Monday, but no answer yet.
Also, I did read the thread regarding taxes, but still confused. Sorry.
Thanks in advance.

[BKParalegal]

For Income tax to be discharged it has to be 3 years or older, so if you filed in May, '08, then any taxes from 2004 or prior would qualify. 2nd, the returns had to have been filed at least 2 years prior to filing, and 3 the IRS had to assess the taxes at least 270 days prior to filing. If the taxes, fit these parameters, then they were discharged, if not, then you owe them.

Good Luck

[Blue14]

For Income tax to be discharged it has to be 3 years or older, so if you filed in May, '08, then any taxes from 2004 or prior would qualify. 2nd, the returns had to have been filed at least 2 years prior to filing, and 3 the IRS had to assess the taxes at least 270 days prior to filing. If the taxes, fit these parameters, then they were discharged, if not, then you owe them.

Good Luck

We filed our taxes for 2007 this year in Feb. 2008. We filed for BK in April 2008. So I don't think we fit in any of the categories, right? I have been trying to contact the IRS regarding the Federal taxes and can't seem to get through yet. So I guess we need to set up a payment plan.

[rfassett]

The IRS can assess taxes during bk, but they can not pursue collection of those taxes until the bk is discharged. Since you were just discharged on the eleventh of this month, I would say the IRS has not noted that event in their records yet. I would give it another 30 days. If you have not heard from them by then, start trying to track down someone at the IRS. Usually, once the account is released from the insolvency division, you will receive written notification of the amount owed. You will then have 30 days to pay it or to contact the IRS to make arrangement that are acceptable to both sides. Good luck!