We have not yet filled out for taxes yet because we think we may owe this year. If we do owe, how do we pay IRS? Will they work with us on payments or does the trustee pay the payments? If we pay them directly do we need to tell trustee what the payments are? Lawyer never really explained this to us, just that trustee gets any refund over $500.00. Thanks for any suggestions!!
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the IRS will NOT contact you during your chapter 13. If you owe, you just send them the money when you can. They cannot set up payment arrangements while you are in an active chapter 13. I owed and sent in the money when I could. They still charged me interest and penalty but did not contact me in any way. -
If you get your taxes done before you file and you owe, you can include those taxes in your filing for 2008 - we filed in 4/02 and put in ours, both state and federal, for 2001. When we sent in our tax returns for that year, per our attorney's instructions we put a copy of the BK filing sheet sent to the Court right on top of the returns. In future years if you owe as RockingGramma states the IRS will not allow you to have another "payment" schedule with them because you are in Chapter 13; we ran into that and after talking to our attorney we were instructed to request a payment plan when we filed (attached the form to the filing with a small check) and the IRS will eventually get back to you and you will have to speak with folks in the BK Department as to what needs to be done and where you can send payments. You will need to keep precise records. However, on this forum someone advised that while they were in Chapter 13, the IRS did give them another payment plan when they requested it. If I remember correctly the amount owed was about $1500. Whether or not that statement was true or not, I cannot say, so ask your attorney and listen to his/her instructions if you end up owing on federal and state taxes during your Plan years and cannot pay._________________________________________
Filed 5 Year Chapter 13: April 2002
Early Buy-Out: April 2006
Discharge: August 2006
"A credit card is a snake in your pocket"Comment
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Just curious what district are you in? We are getting ready to file in TN and I wonder if that is the case with every trustee about the tax refund?Originally posted by bam531 View PostComment
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We filed in Knoxville so I guess that is the district. Not sure if the tax refund is a must do in Tn or just what some trustees ask for.Originally posted by Nicki8875 View PostComment
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