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    Question on Taxes and payments Plans

    I owe the IRS about $2200 for 2008 taxes and have been on a payment plan, which got put on hold because of my CH7 going on. Now that Im about to file my 2009 taxes, Im expecting a refund, and it will be enough to pay that debt off, maybe a little extra.
    My question is, will the trustee get a hold of my refund first and thus not apply it to my 2008 taxes, or does the IRS take it and the leftover goes to the trustee?

    Also how much of the return will the trustee take?
    Filed C7 9-14-09
    341 Meeting 10-26-09
    Last day for Objections 12-28-09
    Discharged 1-4-10

    #2
    Originally posted by WeIzBankrupt View Post
    My question is, will the trustee get a hold of my refund first and thus not apply it to my 2008 taxes, or does the IRS take it and the leftover goes to the trustee?
    Even if you have to send it to the Trustee, the IRS is a "priority" creditor and would just be paid. Of course, the Trustee will take their commission.

    In many cases, the Trustee will allow the IRS to use their "setoff" to, basically, offset your unpaid balance with the refund.

    Originally posted by WeIzBankrupt View Post
    Also how much of the return will the trustee take?
    This is District specific, depends on whether you exempted any of your "anticipated" refund, and whether the IRS uses its setoff to reduce your tax balance.
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

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