Has anyone had back taxes put in their Chapter 13?

[MJJ3767]

Included in my Chapter 13 are back taxes from 2002 totally around $9,000. My attorney told me that I would be given any future refunds since I have now filed. It seems to me the trustee would keep any refunds and considering I filed on the IRS, it certainly seems they would keep it. My attorney said that anything I acquire after I filed, the IRS cannot put a lien on and its mine, including tax refunds. Has anyone else experienced this?

[krielly]

We have been in our Chapt 13 plan for 37 mos now. We included back taxes due to the IRS and our refunds have never been witheld. We have gotten them each year.

[holding on]

Krielly, did the IRS also let you keep your stimulus check? I ask because my lawyer says the IRS will intercept any refund of mine and update my back due tax claim minus the refund amount (if any). The IRS did take my stimulus and apply it to my back due amount, but I am unsure what they would do if I had a refund on tax return. So I have been trying real hard to have 0 refund.

[Carter]

I also had back taxes put into my plan. They did not take my stimulous payment I will have to wait and see if I get a refund this coming tax season and whether or not they will take that. My lawyer told me that since I filed the IRS will not take any refunds from me. I am in Virginia maybe it's different rules for different states?

[Mary Irene]

I had my back taxes put in my Ch 13 and I called the IRS and point blank asked them if they were going to take it and the lady had me talk to another department to make sure that they had it on record there that I was in a Ch 13 and that the taxes were in it. It was on record and I got my entire tax refund and stimulus check. I was in a 100% payback so I did not have to give the tax refund to the trustee. You can find the number to call the IRS on their website and make sure they know you are in a Ch 13 if you want peace of mind.

[krielly]

Yes, we also got our stimulus payment. I find it so unbelievable that the IRS seems to do things differently in different locations.

I have read on here that some folks have had the IRS hold their refunds, and apply them towards back taxes, and others like us, who received our refunds, as the payback to the IRS was already included in the 13 plan.

Our central office is in Andover, MA. All I can assume, is different offices operate differently..............

[AngelinaCatHub]

They gave us a receipt minus our stimulus check. It reduced my tax this year by $1200 that we were entitled to.

[holding on]

thanks for the info. I too am in VA. I spoke to a first level IRS agent and they said that what most likely happened (don't you love 'most likely'?) was that since my plan was not yet confirmed the IRS still had me as owing back taxes and applied the stimulus to that amount owed. I was indeed passed on to a special agent who has yet to return my call in regards to getting an official answer.

So even though my lawyer said the IRS will 'most likely' take any refunds I have, there is a glimmer of hope that any tax refund I get I 'most likely' might be able to keep.

[tencalcpro]

our payback is less than 100% and we have to pay any returns to the trustee.

[MJJ3767]

our payback is less than 100% and we have to pay any returns to the trustee.

I found out the same today. Any tax return I recieve will go right to the trustee because I am not in 100% payback.