IRS notice of intent to levy received after successful Chapter 13

[chicagoed195]

We received our Chapter 13 discharge on March 17, 2015. Two months later we received a certified letter from the IRS threatening to levy our property or rights to property. The year on the assessment was for 2008, for which the IRS filed a claim that was classified as mainly priority with a small amount as general unsecured. 100% of the secured was paid through the Chapter 13 and a small prorata portion was paid on the general unsecured.
The original tax return was timely filed, but did have an unpaid balance at the time we filed our Chapter 13. The amount claimed in total by the IRS agreed with the last notice we had received from them prior to filing our petition.
Has anyone experienced this and is there a logical reason we might still be liable for some amount related to a year that was covered by the Chapter 13 claim bt the IRS?

Thanks in advance

[justbroke]

If this IRS tax debt was included in the Chapter 13 as a priority debt and you received a discharge, then that IRS tax debt is discharged. You should reach out to your attorney because this attempt to collect the debt is some sort of error. You could also, personally, call the IRS Centralized Insolvency Operations and remind them of the Chapter 13 and that the debt was included and discharged.

(Interesting you used the word "secured". Typically, IRS tax debt in a bankruptcy is either "priority unsecured" or "general unsecured" unless there was a Federal Tax Lien prior to the bankruptcy petition being filed. These nuances are why it's important to speak to your attorney for your Chapter 13. Additionally, you can call the IRS Centralized Insolvency Operations and educate them about your case, and your discharge.)

[chicagoed195]

Thanks justbroke.
My bad. I used the wrong terminology. Original claim by IRS was priority unsecured and general unsecured.
Both the attorney and I are hopeful to avoid having to go back to the Bankruptcy Court to resolve. I have been in contact with the IRS and asked that the case be referred to the Centralized Insolvency Operations Unit. However, it has been almost 30 days and I just received a second letter from collections and have not yet been contacted by that unit. I had not considered the wisdom of contacting the unit directly, but will pursue that avenue.

[justbroke]

Contact them directly.

If you are a person that has filed bankruptcy, a debtor's attorney or a U.S. Trustee with questions about an open bankruptcy you may contact the IRS' Centralized Insolvency Operations Unit, Monday through Friday, 7:00 a.m. to 10:00 p.m., EST, at 1-800-973-0424

Source: http://www.irs.gov/Businesses/Small-...ing-Bankruptcy

[chicagoed195]

Justbroke:

Thanks - worked like a charm (I hope)
They had closed out my case incorrectly. Said that they had closed out the case originally as if I had filed my 2008 return late, but the facts clearly indicated I had filed the return timely. So, she reopened the case, abated the assessments and closed it again. The process may take 30 days for the service center to recognize the change which is where the I hope comes in.

Thanks again

[justbroke]

chicagoed195 I hope that worked for you. Why don't you set yourself a reminder to call the CIO (Insolvency) in about 30 days to follow up. This will hopefully put some finality on this tax debt for you! Sleep well.

(Note: I find that the IRS "normally" does the right thing with tax debt involved in a Bankruptcy. However, they have been known to make mistakes and have issues with regard to discharged debt. I always recommend contacting Centralized Insolvency Operations (CIO) with respect to dischargeable tax debt where the debtor has filed bankruptcy and without regard to whether or not a discharge had been entered. Best of luck to you.)

[dmc-2008]

I love this happy ending thread! Justbroke you are priceless here!!!!

[tocuog]

If anyone is in the Mesa, Gilbert area of Arizona and knows of a GREAT bankruptcy attorney for Chapter 13 purposes I would appreciate the attorney name and number if you have had a good experience. My usually problem is that I find a lot of bankruptcy attorneys are not real experts and most of the time they don't need to be. The can fill out the paper work and follow the normal process. However, there are times that you want your bankruptcy attorney to already know and understand the law and the process upfront instead of paying them to do research. Any advice would be great.