IRS Refund

[Granny]

I saw today that the trustee has deposited my IRS refund into my account on NDC. Somebody please tell me this is standard procedure and that I will be receiving that check. I am current with my trustee payments, and my bk paperwork states that my trustee refunds anything under 2000.00. It's listed on NDC as "BANK IRS REFUND CHECK/PAYMENT TO DEBTOR ACCOUNT" but it is not included in the total paid into plan on the account summary page.

However, Attorney #1 never asked about any refunds due, so I bet it wasn't exempted. This was a refund from 2005. I never thought to mention it to him because hubby always owed from previous years, and apparently, his old taxes are now uncollectible, hence the refund.

Thanks

[Granny]

From my previous posts, you could tell I just knew that money was a gonner. It wasn't specifically exempted so why would the trustee send it to me. I walked to the mailbox, hoping for something good, but telling myself that if the trustee was going to send the money, it would have showed on NDC as a check being issued to me and the balance deducted from the account. Besides, it's too soon to hope that they would cut me a check anyway.

Hope go up, hopes go down.

I open the mail box and there's a letter from the trustee. Hope goes up, but hope comes down when I think that it's a letter from the trustee explaining how they are going to keep my refund. Besides, I remind myself, the NDC didn't show a check being cut.

Open letter, one line note from trustee, here's your 2005 refund. I have an emergency fund.

[arkienurse]

[CCB35]

in the same boat

Granny

My trustee did the same thing-at our 341 meeting ,she told my wife and i that because of prior bankruptcies ,she would be getting our tax refunds.We were bummed out because we would needing our income tax.We sent it in thinking she would just take it .our checked our trustee website and saw the addition and subtraction ,and a week or less later we got a check !we couldnt believe it -it was $1500 .she kept $62 .the total refund was $1562 so we get to keep the rest!
we were pleasantly surprised

[lrprn]

Woohooooooooooooooo! (And since you're from Texas, yeeeehaaaaaaaaaaaaaaaa! too!!) Some days are good ones for sure!! Congrats on your overnight emergency fund, Granny!

[CityGirl]

That's awesome Granny!!!!!!

[TiredandWeary]

I'm still wondering and waiting on our refund...

Great news Granny! I have been waiting and wondering about our own tax refund. I mailed the trustee our tax refund check from the IRS on 06/07/2007 along with a letter requesting the refund back to us and our reasons why. I also sent a copy of the letter to our attorney. Our atty confirmed a few weeks later that he rec'vd the copy of letter and he said they would just add the total of the refund check onto our balance owed at the end of our plan. Anyway, the check was deposited into our account by the trustee according to NDC, just like yours, Granny. My question is, how long is it going to take for them to make a decision as to whether or not we get the refund back? It's been over 12 weeks and I thought we'd at least see a letter or something in response from the trustee by now...even if it's a denial letter. I was wondering exactly how long I can expect this to take? If they decide to give us the refund back, could it take several more months or even years? I noticed that Granny said her refund was from 2005! Ours was from last years 2006 tax return which we filed back in April 2007. The amount of the refund is $947. Anyone have any input on this whole process? We are also a Chapter 13 BK filed in July 2006, confirmed in February 2007.

[Granny]

This is one of those situations that varies with the trustee. But I would think that 12 weeks was more than enough.

And for a further explanation as to why I'm just now getting a refund for 2005, let me explain just a little. We always file an extension and don't file the actual return until Oct. so my 2005 taxes were filed in Oct 2006 (just 6 months before you filed your 2006). When I filed the taxes, I also filed for "Innocent Spouse Relief" because hubby has owed them since 1985 and for various reasons, their statue of limitations was extended way beyond the normal 10 years. The alone adds additional time it takes them to process any refund by about 6-8 weeks. Then in Dec 2006, I filed Ch 13 and that put another delay on processing whatever refund we had coming. The IRS finally determined that hubby didn't owe any back taxes (statues have now expired). I'm guessing the IRS forwarded the check to the trustee about a month ago because I received a letter from them about a month ago.

I received the check from the trustee last Saturday, it was cut on Friday, and it showed on Pacer Saturday as being added to my account. Sunday I checked Pacer again and there was the check coming back out of my account and sent to me.

Do you know your trustee's policy on refunds? I would think that since your plan is confirmed, it wouldn't change the total unless your trustee is one of those that keeps all refunds. I'm keeping my fingers crossed for you that you get it soon. Twelve weeks should be long enough for them to make a decision, follow up with your attorney and let them call the trustee.