Can the IRS keep adding interest charges during the CH13 plan.to a priority claim?
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The IRS can be paid interest during the Chapt 13 plan. They cannot however add additional penalties (other than those accrued up until the date of filing).You can't have your cake and eat it too. But you can dip your finger in the bowl and lick the icing
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Tks>What i meant can the IRS keep adding interest to the penalty that is already in CH13.Also any interest owe is dischargeable.Thank youComment
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When you file your 13, the IRS has to file a proof of claim. In that proof of claim, they will specify the penalties & interest.
The figure will be set at their proof of claim amount(s) - unless there is an objection, that' s all that will be paid to them though your plan.
In our case, the IRS filed a proof of claim as follows:
Priority: $XXXX.XX (original amount due + interest)
Unsecured: $XXX.XX (penalties on original amount)
So........the IRS got 100% of the priority amount and only a percentgage of the unsecured amount (the same percentage the rest of our unsecureds got). The rest was dischargeable.You can't have your cake and eat it too. But you can dip your finger in the bowl and lick the icingComment
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