question about back taxes

[kathy4530050]

Hi-I owed about $4,000 in state and federal employee withholding taxes for 08 (for an employee I had but no longer have) and just paid those bills today. I file Chapter 7 this coming week. Is there any way this is going to be classified preferential bill payment? I thought not, because I understood that there was no way I would get out of these bills. However, after perusing this forum, now I am concerned that even payments to the U.S. Treasury Dept. could be suspect.

What do you think?

[StartingOver08]

Kathy, I think you did fine. The IRS is a priority creditor. I made a similar payment to the IRS about 2 days before filing and the Trustee did not say a word.

[kathy4530050]

GREAT. Thanks so much for the reply.

[kst7488]

not only that but irs must be paid in full. you cant file it off in a 7 youll have to pay it back.

[kathy4530050]

ok. Good to know.

[StartingOver08]

You do NOT have to pay the IRS before you file. However, you must have filed all of your returns that are due (in this example, 2008 taxes).

If you owe money you put in on the petition; however, you can not discharge IRS debt incurred within 3 yrs. You have to make your arrangements for payment directly to the IRS. The IRS will not sign an agreement with you during a bankruptcy - but as soon as you are discharged you can sign an agreement with them to pay the outstanding amount. They are actually rather easy to work with, BTDT.