Confirmed Ch. 13 plan and new IRS debt

[greenthinker]

Hi Everyone,

Our regular mortgage payment, as well as a delinquency balance, is paid through our plan, which was confirmed in December last year. Unfortunately, the funds for the mortgage payments were not dispersed until December 30th (after confirmation), and were not received by the lender until the first week in January. So, the bottom line is that I am unable to write off half of the mortgage interest for 2011 because the lender didn't receive it until 2012. I am going to have a HUGE tax bill as a result, and I'm really sweating it! I'm going to do my taxes this weekend, and will call my attorney when I know exactly how much I will owe. But, if anyone has any advice or similar experience to share about this, I'd be grateful...thanks!

[lillymarlene]

Hi, I found that I was owing taxes last year, for 2010, at about the same time my plan was confirmed. From reading this forum, I thought that it would be best to be proactive with the IRS. Then according to my assigned IRS agent, she suggested it would be best if I put the taxes in my plan since chapter 13's cannot take on new debt. However, according to my attorney, ammending the plan could be a problem; a new 341, the unsecured creditors would get nothing, etc. He said to try and make a payment plan with the IRS, which I did.

This "informal" plan has worked out so far. I pay per month, sort of like the trustee payment, and have about another year to go.