Filed for Cpt 13 - just did 2006 taxes & we owe

[dizyblond]

We just filed for Chapter 13 last week (in California), before we did our 2006 tax returns (we filed for an extension in April and did not anticipate owing so we entered "zero" for the estimated tax liability.) Because we need to file our 2006 tax return with the court, I just did them -- and turns out we owe several thousand dollars.
Questions:
1) Is it too late to include this in our bankruptcy case? (We have other priority claims and would not have enough funds to cover this if it is added in. We already have a 60 month plan.)
2) Can we still proceed with Cpt 13 if we determined after filing bankruptcy that we owe 2006 taxes, or will the court dismiss our case?
3) Is there any requirement that we pay all the 2006 taxes before the case can proceed?

FYI -- No, no tax fraud intended! Simply another in a series of mistakes.

Thanks in advance.

[CATCHMEIFYOUCAN]

You are responsible for current taxes owed. (dont feel bad I owe $4000!). I'm paying the IRS $100 a month as agreed plus some when I can. Your case will go regardless that you owe. If you miss a chapter 13 payment your case could/would get dismissed DONT LET THAT HAPPEN !

Best of Luck, Catchmeifyoucan

[dovette7]

Call your lawyer asap and see if you can add it. I anticipated owing and had not filed 06 taxes when I filed. We guessed at owing $5000 and included it in our Ch 13. We ended up getting a refund...I mean the trustee did! But we were able to include 06 taxes. Call and find out if you can add them since you just filed and are not confirmed.

[helpless]

Call your attorney. We found out after confirmation that we owed taxes from 2 years prior and it was added into the plan. The plan % didn't change, just the length of the plan. Of course, we are old law, so call attorney and see what is the procedure. We didn't owe much, but couldn't afford it. It added 2 1/2 months to our plan.

[dizyblond]

Well...

We don't have an attorney -- doing it pro se. No money for attorney.

We can't add it to the plan because it already includes takes overdue from 2003 (husband used to have a home business and we got audited -- the assessment date was late last year) -- so our 60 month plan includes just enough to pay off those taxes (they are a priority claim) and we can't add in the 06 taxes because we don't have enough money to increase the plan payment to cover what will be another priority claim.

I figure I'll tackle things one by one -- do the bk then try to work out an offer in compromise with the IRS on the 06 taxes.

I just want to make sure that when we go tho the confirmation hearing and they see we have taxes due for 2006 that they will still let us declare bk.

[Lesa13]

This is really interesting to me since I also have owed the past few years. My first year of taxes was put into the BK (luckily). The other 2 years, when I called the IRS (spent 1.5 hours on the phone with them) to try to set up a payment plan they told me "by law" they could not set anything up with me until my BK was done and at that time they would contact me.

Of course, my other choice was to pay them the full amount then and there....ha ha, like I have that kind of money sitting around Once I spoke with them, I haven't had any more contacts from them.

Lesa
(Chapter 13 - Missouri)