Bush Rebate - IRS taking it ??

[Skorpnix]

Hello again.
Question that I am not sure if anyone has thought about or knows the answer. I personally still owe $1400 plus to IRS and it is within my case and they are getting paid. Now, we all know we will get $600 give or take and what should happen is we just claim it as extra income next year on our tax forms which would not cause any fuss with the Trustee because if your income only goes up $600 a year very few Trustee's would come after that or change your monthly payment since that is just a fraction of your income for most people. Now here is my question. Since the IRS is cutting these checks I am sure me and everyone else that owes them money is on a list in their computers. Even though they see that they are getting paid via the Trustee when they go and supposedly cut me a check and see that I owe them $1400 could they just deduct the $600 from the total and not send me a check? Does anyone have any input or knowledge on this? Thank you in advance.

[Flamingo]

I heard what you are asking being discussed on some news reports and radio talk shows. Will the rebates be considered taxable income to us on our 2007 returns? I am uncertain if they can utililze rebates toward past taxes owing - that is a tax law question and maybe an accountant or someone working in Tax Law can answer that one.

Now, if your $1400 is included in your Plan payments and the Trustee is paying the IRS during your Plan, you will get your rebate as the IRS cannot utilize those funds for the prior year(s) owing since the debt is included in your Chapter 13. If the $1400 you owe is not included in your Plan, what I state in the first paragraph has to be determined.

[krielly]

We are 29 mos into a 60 mos 13 plan.
We had approx 5K we owed to the IRS which was included in the plan.
We have gotten 2 federal refunds so far since being in the plan, and the IRS didn't touch any of it. I assume that is because they were being paid through the plan already........
We are now paid in full with the IRS, as they were a priority debt, so got paid first.
I remember worrying too if they would take our refund when we first filed, but they did not.
I would think that the IRS would see this refund any different. But of course, that's just my opinion.

K

[Carter]

I too owed $5000 to the IRS which is in my plan. I too got my refund this year and my stimulous check. I cryed when I saw it in my bank account because we have had such terrible luck since 2006. Both mine and my husbands cars broke down a week before getting the stimulous costing us major repairs and this money came just in the nick of time.

[sahaley]

If you owe for 2007 they will take it.

[Flowers]

If they take it, I'd at least like a receipt or something.

I've also heard it referred to as a pre-bate. Meaning if you expect a refund after filing 2008, they will deduct what you got from Bush this year.

It is a mess if you ask me.

[sahaley]

I got a breakdown of the rebate being applied to my balance owed from the irs and faxed it to my atty.

[MajorMike]

Yep, they took ours for 2007

[holding on]

I also owed back taxes in the plan and owed for 2007 and they applied the stimulus to my oustanding debt. thanks though to whoever mentioned sending your attorney the IRS letter. I totally forgot to do that.

[BKOnce]

Now, you all know what that famous saying is.."Nothing is FREE", isn't it?? Given & taken 4 granted... Gimme a break of dat kit-kat bar from Bush ?? Nah.. Never...

[MajorMike]

But there are some who still want the Republicans in office......interesting...

[jane taylor]

They took ours, too. Hopefully I will get it back as I just paid off my Plan yesterday with $$$ I inherited from a relative who passed away last fall.

The paralegal in my attorney's office says that the Trustee has to refund what he does not spend to pay off my creditors, but I know the creditors and the Trustee will take their sweet time to do that. She (paralegal) says that it could be three or four months before we are discharged.

jane