IRS holding refund?

[mom2three09]

They did the same to me, but they released the check and there was no actual delay in my check processing.

Their systems automatically attempt to recover money, but with a Bankruptcy, the insolvency department gets involved. The IRS has had serious sanctions on it for violating the automatic stay, so the IRM (IRS Manual) specifically reads that IRS Agents are to immediately determine if the IRS has a "case", and if so, to immediately file for a motion from the automatic stay before the use their right of setoff.

So, you should call the bankruptcy (insolvency) department and see if it just needs a manual release. I even still owe the IRS $3K and they released my entire check. They didn't setoff one penny!

But, some Trustees have the IRS hold the money so that the Trustee will get it before you do.

same here. we had filed an amended return & after filing our BK we learned that there was a hold on it. I called and the guy I talked to said he would remove the hold (never even mentioned anything about our BK). 3 weeks later we received our check. This was just 2 weeks ago so it was well after our 341. Also, our TT could clearly see that we were due a small refund on the amended tax form because ofcourse we turned all of that into our attorney.... TT never said a word about it.

[whipster1]

Yep the IRS is automatically notified. Look on your matrix, they are there even though you didn't put them there They are watching you...