tax refund after successful chp 13 discharge

[rrami64]

My wife and i successfully completed our chapter 13 in Jan '09. Previous taxes owed were part of our plan. Our trustee shows the IRS 100% paid. We have our official discharge from the bankruptcy court of Texas. This year we filed our 2008 tax return and have a refund due......except our refund has been "delayed" by the IRS. Checked status on "where's my refund" site only to find out that over HALF of the refund has been applied to back taxes owed in '04. How can that be if our "owed" taxes were part of the plan and proven to be completed?? How do we clear this up? Who do we contact? We have NEVER received notices stating that we owed back taxes. (we thought they were all included in the plan).

[justbroke]

You need to contact the Bankruptcy Division at the IRS. Just call the regular number and ask to speak to the BK Division. They probably know your case is closed, and that's the only reason why they "set off" your money.

I owe the IRS (still) about $3K that's in my plan, yet they gave me my entire refund because I'm in the automatic stay.

Make sure that they didn't just "freeze" that portion and are holding it for permission to offset. I would call them as soon as you can. They seem to only be around from 9AM - 4PM Eastern. Let us know what happens.

[rrami64]

The stimulus payment that we qualified for in 2007 was applied to the tax amount we owed on our plan. By applying that amount, we were able to "accelerate" the completion of our plan. If they have "frozen" a portion of back taxes, are we out of luck on seeing the money?

[justbroke]

The stimulus payment that we qualified for in 2007 was applied to the tax amount we owed on our plan. By applying that amount, we were able to "accelerate" the completion of our plan. If they have "frozen" a portion of back taxes, are we out of luck on seeing the money?

If it's just frozen, then they need to reconcile quickly. That's why I suggest that you contact them directly. I received the same "delay" message too, but still received my refund. I never "really" experienced the delay even though their on-line system stated as much.

[rrami64]

Thank you for the advice. In these times, that will go a long way.