question about estimated tax payments for self-employed

[kathy4530050]

I am planning on filing Chapter 7 in a few days and recently had a little more than usual income come to the business. I'm self-employed and want to know if I can make a larger 1st quarter estimated tax payment to the IRS as a way of protecting that income from being seized or will the trustee not like that?

[StartingOver08]

The IRS is a priority creditor, so payments to the IRS are OK.

Make sure you are using bank checks to pay the IRS (or money orders), because if you use a regular check and the check has not cleared before the BK filing date then the Trustee gets the funds in your bank account over your exemption on the petition. So the timing is critical. The Trustee will ask for your bank statement that shows your balances as of the filing date so all transactions must be cleared from that account prior to that date so what remains is the exempted amount on your petition.

Now if you are making extra large payments on your estimated, the Trustee might inquire about it at your 341.

[kathy4530050]

thanks

Thank you. Good to know. I am supposed to file on March 1st, but I will wait until the checks I've written have cleared