Need Clarification

[MGRANA]

I will be putting the IRS in my CH-13 BK. I know there are different classifications of IRS claims. The one that interests me is where in a Chapter 13, the IRS gets paid what I can afford.

I ahve met the 3-year rule, I have met the 2-year rule, but I am confused about about the 240 day rule. Does this only apply to Chapter7 BK, where the person is seeking a total discharge of taxes ? I know that newer taxes are considred unsecured "priorty" claims which must be paid back in full under the plan (but this does not apply to me). This has to do with my 2005 & 2006 taxes which were audited and taxes asssessed in November 2008 under the US Tax Court.

Does that 240 day rule prevent me from craming down IRS taxes in a Chapter 13 case ? Can anybody out there provide some feedback.

[lrprn]

I will be putting the IRS in my CH-13 BK. I know there are different classifications of IRS claims. The one that interests me is where in a Chapter 13, the IRS gets paid what I can afford. ... Can anybody out there provide some feedback.

There are five conditions that all must be met before federal taxes can be discharged if you file Ch 13 or Ch 7:
1. The due date for filing a tax return is at least three years ago.
2. The tax return was filed at least two years ago.
3. The tax assessment is at least 240 days old.
4. The tax return was not fraudulent.
5. The taxpayer is not guilty of tax evasion.

From what you shared, you don't meet all five criteria, correct?

I can't say for sure, but your answer may lie within the IRS Bankruptcy Tax Guide at http://www.irs.gov/pub/irs-pdf/p908.pdf - it was just updated in March 2009 so it's very up to date. Would love to hear if it answered your specific tax question.

[krielly]

Just adding a #6.

Certain type of taxes cannot be discharged, no matter how much time has passed. One of those is employee witholding taxes...