Chapter 13 Plan (Income Tax)

[mclawdawg]

Hi all,

I have a Chapter 13 plan where I have to make my monthly payment, hand over my bonus in March & also my income tax. The only thing is I won't have an income tax and I will owe the IRS $900.00. What can I expect from my Chapter 13 Trustee?

Regards.

[Zombie13]

If you don't have a tax refund, but do owe, you will need to submit the tax return as evidence of the tax you owe.
I suspect the trustee will expect you to make the normal bk payments, and pay the IRS as well, either through a single payment, or a payment plan which can be much more expensive. If you do need to do a payment plan with the IRS, pay it off as fast as you can.

[Carmella]

If you don't have a tax refund, but do owe, you will need to submit the tax return as evidence of the tax you owe.
I suspect the trustee will expect you to make the normal bk payments, and pay the IRS as well, either through a single payment, or a payment plan which can be much more expensive. If you do need to do a payment plan with the IRS, pay it off as fast as you can.

You cannot make a payment plan with the IRS when you are in active BK 13. Ask me how I know. You can make voluntary payments and it's very confusing.

I believe this is a good number with the IRS 1-800-973-0424 It will lead to the BK department and they can explain information to you on how to pay and make "voluntary payments." If you call the general number to the IRS it's hard to find the right person. They are open until 8 pm EST if I remember so you work "business" hours you still have the chance to call. I don't remember what time they open.

This has been a problem for me. I feel like the BK 13 plan didn't allow enough money to pay the IRS and the year after our BK we got slammed with a larger amount owed than the year prior...

[mclawdawg]

Really appreciate that information. Right now It wouldn't be an issue but I promised the trustee that they would receive an income tax and they will not. I've been consistent with all my payments and they will get my bonus this year too. Hopefully they don't discontinue my plan. Thanks for your information and help.

[Zombie13]

You cannot make a payment plan with the IRS when you are in active BK 13. Ask me how I know. You can make voluntary payments and it's very confusing.

I believe this is a good number with the IRS 1-800-973-0424 It will lead to the BK department and they can explain information to you on how to pay and make "voluntary payments." If you call the general number to the IRS it's hard to find the right person. They are open until 8 pm EST if I remember so you work "business" hours you still have the chance to call. I don't remember what time they open.

This has been a problem for me. I feel like the BK 13 plan didn't allow enough money to pay the IRS and the year after our BK we got slammed with a larger amount owed than the year prior...

Ah I did not know that. Good info re: the IRS bk phone number.