Taxes due

[UNDERMICH]

Hello, got confirmed Dec 09' and doing our taxes for this year we owe $1,200 Federal. We had our 2nd mortgage stripped and I got rId of the second job resulting in less pay about $10,000 for the year( this gave us the result of owing this year). Of course we could not change are W2 during the time of filing and now being confirmed. The trustee in our handbook said no new debt can be created of $1,000. How do you get a payment plan with the IRS and will the trustee be mad/ change are W2 to help out next years tax run. Any thoughts .........

[knotholeone]

you can file for an extension and call the IRS and ask for a payment plan. I think these days they will work with you. I have to pay too. What a bummer, looks like we can't have anything.

[UNDERMICH]

Any other thought out their.

[justbroke]

Since you were just confirmed at the end of 2009, the tax liability is actually from 2009. You could motion to amend your plan and include the new IRS tax debt.

However, realize that your plan must be able to pay it over the life of the plan, and perhaps, not at the expense of unsecured creditors. An attorney would know more about the specific requirements for what's allowed in a plan modification.

It's worth a try.

[Flamingo]

First, talk to your attorney since you filed in late 2009 and the tax liability is for 2009. As Justbroke stated, it may be possible to include those taxes in your plan. However, note that any bills, taxes due, etc. after you file are your responsibility as it is new debt. You need to review your tax situation so you don't get stuck owing taxes every year. If you cannot include those taxes in your Plan, the IRS will work with you since you are in Chapter 13 as to a payment plan that you can afford to pay back the taxes. You will incur interest and penalties after April 15, 2010 and during the payment plan so act on this quickly.

[UNDERMICH]

"You need to review your tax situation so you don't get stuck owing taxes every year"

From my understanding we can not adjust our W2's ..Will the trustee do this to prevent the issue in the future?

[newbie2]

"You need to review your tax situation so you don't get stuck owing taxes every year"

From my understanding we can not adjust our W2's ..Will the trustee do this to prevent the issue in the future?

I'm assuming you're in Michigan. You're right - we can't adjust our w-4's during our plans. The way it was explained to me is this: Since our income tax payments were already accounted for in our schedules the trustee assumes we would budget for that during the year.

Your issue sounds different (first year owing?). If this is the case contact your attorney so that he/she can ask for trustee permission for you to adjust your W-4. Good luck!

[dlinid]

Have you filed yet? If not go see an accountant, they may be able to get that amount down and assist you with planning for 2010. Its is all about planning and having a good accountant on your team can really help. I am sure you have thought of everything, but fresh eyes might help.

[Billssuck]

I owe too ($1,099). I did get a state refund and I'm applying that towards what I owe to the IRS but that is still $750. I'm gonna call the IRS next week about a payment plan and I have a phone conference with my lawyer next Thursday to discuss this as well as converting to a chapter 7 because my husband's income has gone down significantly since we filed last May. Does this stuff ever end? Seems like I get going well and then another curve ball is thrown.