IRS Payment Plans in Chapter 13

[Johnworker1]

During my previous Chapter 13 (IIRC 10% repayment) I fell behind in my taxes and filed 2 years late and the taxes due, penalties and interest that was owed was somehow rolled into my plan. I tried to request a payment planned but was denied then a few months later I got paperwork showing it was added to my Chapter 13.
Well now I am in the tail end of a 100% repayment plan and again I was late filing taxes. This time I am wondering if I should pay them off immediately (with huge crunch in budget) or request a short (6-12 month) payment plan? Are IRS payment plans allowed during BK from the Trustee's perspective? Or is it something that they won't find out? I have to supply my tax returns so are they just interested in that I filed or are they just as interested in my payments?

[justbroke]

IRS Online Payment Agreements (OPAs), or any payment agreement, will not be allowed during an active Chapter 13. What you can do is request an extension if it's from tax year 2019 (last year).

If this is from a late filing of the 2018 taxes, then you could run into an issue. If the Chapter 13 Trustee learns of this, they can move to dismiss for failure to comply with the terms of the confirmed Chapter 13 plan. Whether or not your, or a, Chapter 13 Trustee would move to dismiss is too fact-specific. Ultimately, it will likely be up to the IRS to complain about it.

As for interest, the Trustee is interested that you filed and whether or not there was any refund. Since you owed, they are probably not interested in probing further.

[shipo]

Johnworker1, I've had several run-ins with the IRS over the years and they are not to be trifled with; in your shoes, I would pay off the taxes and deal with the short-term budget crunch.

[Johnworker1]

Thanks justbroke and shipo enough said! I will not take any chances....