Starting our Ch 13 planning… (and taxes !!)

[scuguy77]

We are beginning our Ch 13 planning (trying to figure out estimated payment with attorney) and timing of file etc.

We are expecting on owing IRS and State (CA) when we file (for 2012 taxes that will have been filed), so claims will exist for them.

Here is my question…

We also have a current IRS audit of 2010 taxes (which will most likely result in a bill for 2010 and 2011), we are hoping the audit will not take long but since I cannot control when they will be finished (hoping it won't take longer than 1-3 months), what if we have to file before the audit is complete and bill is issued?

The expected bill will be between $20-30k (for both Fed and State), it would be considered priority debt, can we amend the plan? Would they just amend their outstanding claims (Fed/State)? Will it change the plan payment or just alter the allocation of payment?

We aren't expecting to file until April/May …

Thank you for your assistance ...

[despritfreya]

Since we know the approximate amount of liability (which, for 2010 is a priority claim that must be paid) my recommendation is to estimate the debt and include the funding in the Plan. It is easier to add (or remove) a small amount of funding once the real number is known then to wait and add (or remove) a ton of funding down the road.

And, yes, the taxing agency will amend its claim once the audit is completed.

Des.