DELAY In refund? What does this mean?

[bktmom28]

I am in Oregon and filed my taxes 2 weeks ago. Set up auto deposit and expected date 2/12. When I checked this afternoon, it said there is a delay and to call the IRS. I called, was asked if we file BK, and was given a number to call which, go figure, isn't working today. Anyway, does anyone know what this is? We are discharged, awaiting closing and now I am a little panicked, because I was expecting this to get posted to my account tomorrow. Thanks!

[waitinginmo]

Same thing happend to me a week ago, only i got thru to the Bankruptcy dept of the IRS.
Basically what happened is before you filed your taxes your trustee sent in a freeze and for it to be turned over to them (the trustee). I am a no asset case but my trustee didnt do this until I sent her the copy of my tax returns. We were only allowed 2300.00 in tax exemption and I got back 2488. She sent me a email telling me that she didnt want the return and that I could have it. That day she asked to be relievd of her "duties" as trustee and that I was a no asset case. However 5 days before I filed the return she put a freeze on the IRS account. So now it has to go to her and she has to send it to me. Could take up to 60 days the IRS told me. Basically your trustee froze the account to see how much you were getting and they wanted to get their hands on it first.

[bktmom28]

I figured as much, just would have been nice to know. Sucks when I am expecting it!

[waitinginmo]

I know what you mean. I looked in my bank account that morning and it wasnt there so I checked the IRS site and it gave me the same thing. Funny the night before I checked the website and it said nothing of the sort. Sucks I know I was really hoping to have it in my savings account so i could start feeling better about myself.

[Faust]

Does this happen in all cases? I am WI and my atty said my return is exempt for my case.

[waitinginmo]

Depends on the Trustee. My Trustee was super nice but wanted to make sure she got her hands on it first I guess, just in case it was more than I had expected and exempted. At the 341 she said she was going to leave my case open until we filed our returns and she got a copy of them. We filed on 1/27/2010 (our returns) and when I talked to the IRS they said she put a freeze on it on 1/22/2010.

[bktmom28]

When we filed, our TT also said that she wanted a copy of our tax return when we filed, but we when we were discharged on 1-12, our atty told us that our BK was basically closed and that we didn't need to send in our tax return. No mention of it getting "froze". I am really bummed out though. I was looking forward to this chunk of change going in the bank to start our savings. Oh well, maybe next year, though the TT hasn't taken it yet. Wonder when I find that out.

[tdawg]

Does this happen in all cases? I am WI and my atty said my return is exempt for my case.

I dunno. I filed in November, and my attorney said the trustee wouldn't want my return since in the past, I haven't had hardly anything or I've owed. I insisted on using the remaining to exempt $4000 of it. I think I might get even more than that back, so I'm glad I did. The trustee didn't say anything about it at the 341. So now I'm wondering if after the discharge he'll just keep the case open until after I file. I would have assumed he would say something at the 341 if that was the case though. Your trustee didn't say anything to you about this previously?

[LimpDisc]

Maybe the U.S. needs to sell some assets before paying you?

[backtoschool]

Whether a trustee can circumvent your tax refund seems to vary by trustee and by district. I have an asset case that is discharged but not closed and I got my income tax return direct deposited to my account last week. But the trustee did not ask for it at my 341 either so that may have something to do with it.

If you were asked for your income tax refund at your 341 by the trustee then I would not assume that you will get the refund on the date the irs posts on its website. YMMV.

[bktmom28]

I tried to call the Centralized Insolvency Call Site in PA, which is where the IRS directed me and they are closed due to the snow storms. I didn't even know this place existed! I was able to get connected to someone who put me through to our local BK court in Eugene and he told me that when he looked up my account, we are in fact a no asset case and he doesn't have the authority to look up our account. He said alot of times there will be a "freeze" put on Bk no asset cases to make sure that there aren't back taxes. We have no back taxes so I am hoping that this is just a glitch. He said sometimes the flag is lifted immediately and refunds go through in a couple days. I hope this is the case.

[LookingAhead]

I just checked the website to see about our refund (we haven't filed yet...are waiting for the refund money to file) but it can't find us?? We mailed our papers in on the 2nd... I hope it hurries! I was hoping to have our refund next Fri...guess maybe not now??

[justbroke]

I have had this issue two years (since filing my Chapter 13). It has never affected my direct deposit date though.

[bktmom28]

Got ahold of someone at the Centralized Insolvency Call Site and he said that the trustee put in a request for the refund to be sent to her. He wasn't sure of anything else, but that the check was in fact sent to her and that was it. I hope that she doesn't keep it. It is 2600.00 and that includes our EIC which I know is supposed to be exempt. It just seems like such a small amount compared to the $42000 in CC debt that was discharged. Also, why is it that when I called, he said it appears that we are listed as a no asset case? I am truly grateful for our clean slate, but I also just found out my daughter needs $1000 in dental work! When will it end???? Anyone who has been through this, please let me know. What happens next?

[readytofile]

Got ahold of someone at the Centralized Insolvency Call Site and he said that the trustee put in a request for the refund to be sent to her. He wasn't sure of anything else, but that the check was in fact sent to her and that was it. I hope that she doesn't keep it. It is 2600.00 and that includes our EIC which I know is supposed to be exempt. It just seems like such a small amount compared to the $42000 in CC debt that was discharged. Also, why is it that when I called, he said it appears that we are listed as a no asset case? I am truly grateful for our clean slate, but I also just found out my daughter needs $1000 in dental work! When will it end???? Anyone who has been through this, please let me know. What happens next?

I take it your lawyer didn't exempt your refund? In order to keep it, it needed to be listed as an exemption at least in our case. We used our cash exemption to cover our refund.