STILL not sure about taxes and Ch 7

[CarrieOakey]

In WA state.

Driving me nutty, this is lol.

Filed Ch 7 no asset case pro se (with the help of NOLO's book) April 12 (something of an emergency petition, with remainder of schedules/docs to be filed by Apr 29).

Trustee meeting May 11. Single petitioner, with monthly gross income of $2400; total debt amount $30k, with $4k of that in back taxes from 1999. Remainder is 90% medical bills.

About to file taxes (extension request filed successfully), and after I plugged the numbers show a refund amount of around $2000.

Utterly confused as to whether trustee will "take" this amount, whether IRS will still try to apply the amount to past owed amounts.

Help! Is there a "standard expectation" of what a trustee may or may not do typically in this kind of situation?

Any guidance, pointers, whatever very gratefully received!

[JoeBankrupt33]

I think you should consider using the Federal exemptions, which are available in Washington State. That way, if you are not exempting a home, you can use the federal wild card to cover your tax return.

Since you have already filed BK, you should eventually get your money back, although it might get delayed at the IRS, and it might get sent directly to the trustee. But, if they send the money to the trustee and it is exempt, then the trustee needs to send you that money. Who knows how long that could take.

[OregonMom]

I know when ever I owed the IRS and the next year got a refund. They automatically took what I owed them and I saw the difference if there was any. So if you owe $4k and are expected to get $2k back the IRS is just going to send you a notice it was applied to owed taxes, you won't see a check. Not sure what trustee will do since you won't actually ever get a check from the IRS.

[CarrieOakey]

Joe, thank you SO much for your quick reply.

Yeap, I have more than enough "unused" exemptions (probably not the correct way to phrase it, sorry!) to cover the tax return. Now all I have to do is find out exactly where it goes on the forms...

I shall be but a hairless wreck by the time this is over. But hopefully a learned, wiser debt-free wreck

[CarrieOakey]

I know when ever I owed the IRS and the next year got a refund. They automatically took what I owed them and I saw the difference if there was any. So if you owe $4k and are expected to get $2k back the IRS is just going to send you a notice it was applied to owed taxes, you won't see a check. Not sure what trustee will do since you won't actually ever get a check from the IRS.

Hmm...I think the difference might be that the moneys owed to the IRS in my case qualify for discharge in the chapter 7 and have been listed; the IRS is not - as far as I'm aware - exempt from the automatic stay, for example (though they can sure as heck try to have the stay lifted), and thus shouldn't be able to withhold any refund with the intent to apply the refund to those tax debts, correct?

Ay, the confusion