Taxes Owed during Ch13

[spearmint]

How is it handled in Chapter 13 if you are found to owe back taxes during the Chapter 13?

[StartingOver08]

Taxes are a priority debt and paid in the Ch 13.

Do you mean these taxes were owed at the time of the filing but not included? Or are these new taxes? If they are new, you have to pay all post petition debt youself outside the plan

[spearmint]

Taxes are a priority debt and paid in the Ch 13.

Do you mean these taxes were owed at the time of the filing but not included? Or are these new taxes? If they are new, you have to pay all post petition debt youself outside the plan

My accountant is working on some tax returns for me and got a notice from the IRSA. The amount will, of course, be negotiated, but I will no doubt end up owing something but won't know how much until late this year - and I plan to file Ch13 within the next month. Will I be able to add the taxes later?

[StartingOver08]

You want to list the taxes in your petition, even if you have an 'unknown' amount. Your CPA can probably give you an estimated amount and of course the claim will come in from the creditor.

Don't skip over the taxes because the final bill won't be in until later. Use what you have to put in your petition. Check with your attorney as to exactly what documentation is needed to be added to the petition

[spearmint]

So would I start paying on them immediately - as soon as I start paying on the other item included in Ch13? Thing is, right now it's a large figure but won't be after about 9 months.

[StartingOver08]

Yes, you need to put the taxes in your petition so the debt is paid in your plan.

I assumed that these taxes are recent and non-dischargeable. If the taxes are not recent and you filed the return on time, then they may be dischargeable if they are older than 3 yrs. Check out the thread on taxes that HHM has put together for timelines.

[spearmint]

Yes, I found that thread after I posted my message above.

The taxes are not recent and the returns are only now being filed. I have a huge tax bill but my accountant thinks he can whittle it down. I guess I have to pay for a year or two until I reach the three years. Can I then discharge them in the Ch13? I am about to file for a 5-year period.

[krielly]

If your returns were not filed on time, I don't think the 3 year rule applies for being able to discharge them.

You more than likely will have to pay on them for the entire 5 years.

Prioity debt = Principal & Interest
Unsecured = Penalties (paid at whatever percentgage your plan calls for).

K

[MajorMike]

Not true, we're adding ours as an amendment priority debt within the plan. We are not allowed to pay anything outside the plan

Taxes are a priority debt and paid in the Ch 13.

Do you mean these taxes were owed at the time of the filing but not included? Or are these new taxes? If they are new, you have to pay all post petition debt youself outside the plan