Please read...Trustee taking our tax return after discharge...

[laurannm]

I'm a no asset case, too. I just kinda assumed that once a case is designated 'no asset' on Pacer, then that's the end of the trustee looking for assets (ie tax refund). I guess I'm going to plan on not keeping/spending my refund this year...just to be on the safe side.

I would talk to your lawyer about this and see how it is handled in your district. In the majority of cases, once you are closed then any refund is your to keep.

Danaf - Did you mention in a previous post that you were served some sort of form regarding the turnover of taxes at your 341? I think in a lot of cases if a trustee is interested you will know at your 341 or shortly after.

In our district, according to our attorney, even if we didn't list the tax return specifically as an asset (but instead listed is pro-rated income), the trustee can see that we had enough of our federal wild card exemption available to cover it, thus by default we are good (i.e. if he tied to take it, we could amend our exemptions and list it).

Just because I tend to get overly paranoid, I have been calling the IRS Solvency Dept every few days to check and see if the trustee has placed a hold on our tax refund. So far nothing, and the IRS agent seemed to indicate that if they were interested, a stipulation would be filed along with their final report (which the IRS agent actually looked our case up and did not see t)

[hopejones]

Yes, I was a no asset case. What difference does that make?

I'm a no asset case, too. I just kinda assumed that once a case is designated 'no asset' on Pacer, then that's the end of the trustee looking for assets (ie tax refund). I guess I'm going to plan on not keeping/spending my refund this year...just to be on the safe side.

[danaf]

Yes, I was a no asset case. What difference does that make?

[hopejones]

Danaf,

Were you a no asset case?

[danaf]

Generally but not always. My case is closed and the trustee sent me a special 'love note' wanting my return a few weeks ago. Thank God I increased my exemptions last yr.

[laurannm]

Just a follow up to this thread. Is it usual for the trustee to come after the tax return even if they already filed a no asset report and requested to be removed?

I declared that I have a sizeable return coming and at my 341 the trustee asked me about it. That day, she filed it as a no asset case. I know the trustee can, however is it usual for them to change their mind?

I am 65 days past my 341 and no discharge yet in California

Closing is generally the key...if your case is left open after discharge, they may be waiting to see what your return looks like. Otherwise, if it closes, then you are probably in the clear

[danaf]

I agree - you can't leave out some things and then file an amended return because guess what - the trustee will be sent the amended copy later on....so not a good idea.

BUT - if you are one of those unlucky people whose trustee is targeting your return and say, you have student loan interest that you could deduct....the fact is that it is not a requirement to deduct it. I'd be dammned if I let a trustee have that little nugget esp. since there is absolutely no law that says I HAVE to include such a deduction. I wouldn't get it, but neither would they. Nobody wins.

[Trixie007]

You know if you were to "forget" certain deductions you could file an amended return later in the year or even next year. Speak to your tax preparer about this.

Generally not a good idea...

[akame5150]

Just a follow up to this thread. Is it usual for the trustee to come after the tax return even if they already filed a no asset report and requested to be removed?

I declared that I have a sizeable return coming and at my 341 the trustee asked me about it. That day, she filed it as a no asset case. I know the trustee can, however is it usual for them to change their mind?

I am 65 days past my 341 and no discharge yet in California

[hopejones]

hopejones, I asked my attorney the same thing and he said not to send the trustee anything. I guess if they want my return, they can ask for it, but my attorney said I didn't need to let them know when I file or to supply them with a copy.

Thanks wonkettegirl, that's good to know. I think I'm going to be on pins & needles until this whole ordeal is over with .

[wonkettegirl]

hopejones, I asked my attorney the same thing and he said not to send the trustee anything. I guess if they want my return, they can ask for it, but my attorney said I didn't need to let them know when I file or to supply them with a copy.

[BrokeAzzez]

Thanks bkchap7filer My attorney is a giant jack ass. He is of use to me and of no help. I am in direct contact now with my trustee.....I wonder if I can just simply ask her??

[bkchap7filer]

Broke: You aren't a no asset case....your other post about them taking your tax refund says you are an asset case, but the only asset they are interested in is your tax refund.
Sorry about your situation!! That stinks for you! Perhaps you can amend your documents, though, and claim the refund with your wild-card. That is your responsibility. You can't expect the trustee to remember that you have a wild card to use for the refund.....you have to indicate that is what you want to do with it.

Get your attorney on the horn!

[hopejones]

...I just sent my trustee my tax returns yesterday and am awaiting a response.

When I had my 341 two weeks ago, the trustee never said anything about my tax refund for this year. Am I supposed to be sending a copy of my return to the trustee?

[BrokeAzzez]

I am worried about this too...I just sent my trustee my tax returns yesterday and am awaiting a response. In indiana we have a 4000 wild card exemption...I'm hoping that my return falls in this category. I'm a no asset case and my attorney said (he's a moron though) that taking my return is not a usual process in a no asset case....