Chapter 13 and the IRS

[magic13]

For those who filed and owed money to the IRS, how did they treat you? Did they audit your past taxes, did they raise objections,did they show up at the 341 meeting. Thanks

[Flamingo]

We had both federal and state taxes included for tax year 2001 in our 4/02 filing. We had no trouble as to the IRS but the state had a representative at our 341 meeting who sat at the table and indicated publically that we owed taxes for that year, stated the amount owing and it was our responsibility to ensure those taxes were paid. I was under the impression that the rep was there to state that to anyone at their hearing that day in the event they included state taxes in their filing. I felt like a child being admonished with the way it was handled as we are law abiding taxpayers and always have paid any taxes due and owing.

[kakdbass]

I failed to file state taxes in 2010. By my calculations I owed them money and included them in my Chap. 13. I guess my figures were incorrect because they ended up owing me. : ) As far as the IRS, I owed them about $4k including penalties and never heard a peep from them besides them filing a claim. Had no issues with getting my refund this year either. Good luck!

[travelmama]

When we went in for 341 meeting, several IRS reps were there, and said we owed like $12k in taxes b/c we never filed for 2008. Luckily i had brought a copy of that return with me, proved them wrong. but they are very greedy beady eyed bast&&rds that browbeat me saying "you need to file your 2011 taxes right away" even though it was only early march. They were very demeaning.

[SiftedLikeWheat]

When we filed for BK 13, we already owed taxes because we had used a portion of our 401k to try to avoid BK (bad idea, because the 401k might have been exempt--hindsight is 20/20). Before filing BK we had already requested and been approved for a payment plan with the IRS, allowing us to pay $600 per month. When we filed BK, the payment was adjusted slightly and the trustee took over the payments. We paid for 42 months and are now done with our payments, awaiting discharge.

We were not audited by the IRS. We were allowed during BK to keep a small refund, but that may be up to the trustee in your district.

We had never had any past problems with paying taxes. The whole cause of our BK was moving across country just as the economy collapsed. Our house did not sell and ended up losing 60% of its value. My husband took a pay cut to move--no way we could keep up with the mortgage. After trying to hang on using the 401k money, we finally had to throw up our hands in the air and give up. I also had cancer at the time. Been a long haul, but things are getting better for us again.

Hang in there!