Annual Tax Return to Trustee - Definition & Timing Clarification

[bkforum4me]

Hi, I am new here. This is a great site and so thankful to find it.

two part question:

1. DEFINITION (of "TAX RETURN"): My confirmation order states: debtor's must send Trustee future "Federal Tax Returns". The words, and I quote exactly: " Trustee is to be provided, thru the commitment period of the Plan....future Federal Tax Returns,"...from beginning date. End.

So I assume that I do not need to send in the cash ($) refund check since it states only the "Tax Return" is required. The word "Refund" or "Proceeds" etc.. is not present in the language. Or, does the word "Return" mean the filing (1040), and implies, the cash ($) too.

2. TIMING CLARIFICATION: My last plan payment (36 month plan) ends in January, 2015. Does that mean i will not have to send the Trustee the year 2014 tax return? As my "commitment period" ends January 2015, three months before I will have to file the April 2015 return. Or will the Trustee hold the discharge until they receive the tax return.

[kornellred]

All you are required to do is exactly what the plan confirmation order states. You send in your subsequent tax returns. You do not have to send in any refund money. If your refund is significant, the trustee may insist on a plan modification - that is implicit in the rationale behind continuous reporting of earnings during the plan.
As for your timing question - that is hard to answer. But, by the time your get to your 36th and final payment, you will have fulfilled the obligations of the plan and be entitled to discharge. Asking your attorney is the best advice with regard to this question.

[Flamingo]

Always check with your attorney as to questions such as yours....in our Plan it was specifically stated we had to provide copies of our tax returns within five days of filing. Since you will still be in your plan for tax year 2014 and your last payment is due January 2015, it will take at least another three months to obtain your discharge and you may be required to send in your return for that year - again, check with your attorney on that. We had an April 2002 Chapter 13 filing date and had to send in our tax returns for the last full year of our plan.

[bkforum4me]

thanks for the feedback.