I am currently in a repayment plan with the IRS for last years taxes. This year I am expecting a refund of about $275. In Iowa, I have to surrender all refunds to the Trustee, or forward any letters explaining why the IRS might withold the refund. Of course, the IRS will take the refund to apply it to my balance due from last year, which will be a huge help. My question is, should I sent the Trustee an extra $275 that would have been my tax refund, or just forward the letter saying they took the refund to pay down the past years balance? I don't want to cause any issues, as my BK has gone very smooth so far and I never did inform my lawyer or trustee last year of my balance due and payment plan.
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Filed: 3/04/2009
341 Meeting: 4/20/2009 Confirmed: 5/15/09
$25,000 Unsecured Debt/$11,500 Secured Claims
$214/month for 60 months 0% Plan
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I would worry about anything. The IRS basically has right to that return first, the trustee would be entitled to whatever is left. -
Actually, you need to contact your attorney and let him know what is going on. Since your confirmation order states you are supposed to send in all tax refunds, and you didn't inform your attorney that you owed back taxes this could be an issue. People need to remember that during the life of the Chapter 13 plan their whole financial house is under the scrutiny of the trustee. The attorney has to be kept in the loop.
Best to call the attorney, explain the situation and take it from there. For the OP to deal directly with the trustee (via a letter stating what happened) isn't good.Filed Chapter 13 02/2006 - Confirmed 05/2006 - Discharged 09/2011
I'm not an attorney. My replies are merely suggestions or observations, not legal advice. As always, consult with an attorney before making any decisions.Comment
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