IRS Payment Plan

[jersin000]

I was just curious... I am in a chapter 13 and I owe taxes this year and noticed on the instructions for filling out the payment plan application it says if you are in Bankruptcy please call a number to talk to your local insolvency unit. What exactly is it they are going to tell me or what are they going to do? Will they deny my payment plan?

[AngelinaCatHub]

We were on a payment plan when we C7nd. They stopped us from paying until it was discharged. We then had to sign up for the plan again (they don't forget). I would think your lawyer/Trustee would have included them in a C13. I wish I could help you a bit more but the IRS should have definitely been considered in your plan. 'Hub

[HHM]

ACH, look at the dates in the signature. This OP's case was filed back in 2009. So a 2011 tax liability would have in no way been contemplated in the plan.

I think it is simply a matter that since you are in BK, you need to speak to the IRS office that is trained in BK.

The real issue (1), why did you even incur a tax liability in an active 13 (not a good thing). (2) is the amount small enough that any payment plan you do enter with the IRS is such that you can still complete the chapter 13.

However, the tax debt is a post petition debt and therefore you are liable. And no, you cannot amend your chapter 13 to include the debt.

[jmac]

I owed 5700 on my first year to the IRS they added it too my plan and payment went up 100 bucks or so. This year i ended up getting back 250 which my trustee got.

[Carter]

The tax liability will sit there dormant until your discharge. Then when you get your discharge you can set up a payment plan with the IRS. That is what the IRS told me. You still need to call them and let them know you are in a chapter 13 so they can note your account.

[spidge]

The tax liability will sit there dormant until your discharge. Then when you get your discharge you can set up a payment plan with the IRS. That is what the IRS told me. You still need to call them and let them know you are in a chapter 13 so they can note your account.

Are you saying that simply calling the IRS BK department and claiming your in a BK13 plan and a prior years taxes are already included will keep them from collecting until you are discharged?
Would this effect the final review before discharge and effect it causing delays?
So, if one buries his head in the sand during the BK13 the fees and interest would keep adding to the balance, yet still not be collectible by the IRS until discharge?

Anyone have this experience where they can share?

[lillymarlene]

I filed chapter 13 the end of October 2010. Then by April 2011, I found that I owed the IRS around $2,400. It may be different for other districts, but my attorney said that it was troublesome to ammend a confirmed plan, and that I wouldn't be able to pay anything to the unsecured creditors, which wouldn't "look good." He suggested I make a payment plan with the IRS.

So I contacted the "Insolvency Unit" and set up a payment plan. Hopefully, it will be finished this year. I didn't think that I could hold off on paying it, until my chapter 13 is discharged. Before I set up the plan, I received a letter that if I didn't pay in full, the IRS could possibly dismiss my bankruptcy.

[spidge]

Just spoke to IRS specialist in the BK department and she simply gave me an address to send whatever amount I am able to send. She said not to worry about the amount, just show an effort. I had conversations with three different individuals and all were very friendly and helpful. I now know my BK file number the IRS uses and that is all I have to put on the check. No other documentation and no SS#.

Whew!!! Now I just need to get to it.

By the way two of the individuals said my options were based on the state and district I am in.

[freeme0215]

I was just told by an IRS BK specialist to INCLUDE the new monies owed to the IRS into the Ch 13 I filed in 2010...I owe for 2010 and 2011..2010 owed due to LTD not taking out enough taxes and 2010 due to LTD issue and my lump sum from SSDI...I didnot make any money nor work during these years...