State tax agency wants back taxes. Was it discharged?

[avengers]

My wife and I filed chapter 7 in October 2014. We received the discharge in January 2015.

Among the debts listed and discharged was a tax debt from the 2010 tax year. Basically, some income was mischaracterized as exempt and we owed $10k in back taxes to the Feds. The state never sent us anything and, quite frankly, we overlooked it. Neither me, nor my wife, nor my bankruptcy attorney ever thought of contacting the state tax agency.

Today (11 months after filing for BK and nearly 3 years since the IRS notified us of the deficiency), the state tax agency sent us a notice stating that the Feds notified them of our income increase and we owe back taxes on it (approximately $1000.)

I'm pretty sure that this debt technically accrued before October 2014 and was thus covered by the bankruptcy filing, despite the fact that the state was not listed on the filing. Is this correct? If so, what do I need to tell the state to get them to stop trying to collect the back-taxes?

EDIT: In case it matters, it was an asset case. A total of $1800 was paid to creditors on $78k of debt.

[despritfreya]

Among the debts listed and discharged was a tax debt from the 2010 tax year. . .the state was not listed on the filing . . . it was an asset case.

The tax was subject to discharge if. . .

1. The tax was more than 3 years old - 2010 became 3 years old as of April 16, 2014 if you did not seek an extension to file. If you sought an extension then it became 3 years old as of October 16, 2014.

2. You filed the return either on time or at least 2 years prior to filing bk.

3. Any audits were completed at least 240 days prior to filing.

4. No “fraud” was involved and

5. The tax was not a “trust fund” tax such as sales tax or payroll tax

My spin on this. . . What you have is the new assessment based upon your incorrect return - the under reporting of income. Assuming the audit was timely under state law, I believe you are stuck with it. Add to that the fact that you were an asset case and the taxing agency was not listed. . . even if the debt met the test for dischargeability, you would be stuck with it. (Your "edit" does give a piece of critical information.)

Des.

[avengers]

Thanks, That's what I was worried about. Luckily, it's not that much, but it'd would have been nice to not have to pay anything.