Keeping the IRS at Bay Until I File

[brokenomore]

I was on a payment plan for back taxes with the IRS, but because I owed a small amount on my current taxes, they considered me to be in default.

I no longer have the payment plan, but it was suggested that the IRS might roll the new taxes into the payment plan.

Howevever, the old taxes--about $4,000--can be discharged when I file Chapter 7.

The IRS has threatened levies, but I have no assets. I had been in a chapter 13, but failed to keep the payments, and we lost our house. The only thing they could do is sieze my checking account, which has very little in it, but if they screwed up my account it would be hard to cash checks and do business.

For various reasons, I don't want to file until January 2011.

Is there any way I can stall the IRS until then?

Once I file, I will only owe them for less than $1,000 of newer taxes that cannot be discharged.

But if go back on a payment plan, anything I send will be applied to the old taxes, which will be discharged anyway.

[packerfan]

I just went/am going through the same thing with the IRS for taxes owned on our closed business ($1400) Have you been contacted by a local collector yet? If not then call and try to renegotiate your repayment plan...Your best bet is to deal with it before they send you out for collections which is NOT a pleasant experience. I tried to do this but apparently something got screwed up and I ended up with the local guy..I had renegotiated my payment to be $25 a month for 1 year and then increasing after that

I don't know what your personal financial issue is but in my particular financial situation is severe enough and the amount is fairly small that I was told he was going to recommend that they don't take any actions to collect for now.

[empowered]

Gosh, is it actually possible to keep the IRS at bay?

Who knew.

[packerfan]

I think it really depends on the situation...in my case there honestly is NOTHING for them to come after...we lost our incomes, home and business. I don't even have a bank account..plus were talking about less than $1500, I'm sure if I owed a lot more it could have been a different story. At the time I spoke to them I was the only one working at an $11/hr job, I've been let go since...so not even a paycheck for them to come afer. And the filing of BK stops all collection activity including levies...but after the bk your open game...So the best advice I can give is deal with it if you can't negotiate a reasonable payment then you open yourself up to them digging the worst thing you can do is play games and try and avoid them.

[empowered]

Fortunately, they're not among my creditors. But I did manage to muster up the wherewithall to become a layperson representative for a dying ex a few years back and managed to get him on "non-collectible" status long enough to give him a bit of respite while he died. It took some work. It's funny how things that would have been terrifying for me to do for myself were something that I would, without question, do for him, and probably for anyone else I cared for. I mean, who puts themselves in the position to call and receive correspondence from the IRS willingly? Ordinarily, it would certainly not be me.

Best wishes to you.

[tcreegan]

old taxes vs new taxes

Hi Brokenomore,

I was curious, how come the older taxes are dischargeable and the newer ones are not? Is there some sort of statute of limitations on tax debt?

News to me, can you let us know how that works? I just know of the IRS taking a slice of my daughters tax refund each year until they had all they wanted. I thought you couldn't discharge taxes in a bk.

Enlighten us with your IRS/Tax knowledge then head over the collections or repossessions thread. There you will find a host of artful-dodgers.

Tom in Colo

[brokenomore]

There is a post about it somewhere in this forum that explains it very well, and by someone who has a much greater understanding about it.

As I understand it, taxes that are due from returns that were due at least three years before filing bk, and from returns that were filed at least two years before filing bk, are dischargable in chapter 7.

I'm just trying to figure out what I should do for the next five months before I file bk--whether I should try to make a new deal with the IRS, whether I should just wait and not worry about them, or maybe just let them know I plan to file bk.

Ultimately, I'll ask my attorney, but just wanted to see if anyone has had any experience in a situation like this.

[biotechsolution]

One thing to look at to make sure the taxes are dischargeable is were they eligiible for discharge when you filed your chapter 13? Because the time you were in the chapter 13 tolled the time that makes them eligible for discharge.
Meaning you can't count the 3-year window and 2-year window time when you are in your chapter 13. During a bankruptcy the IRS cannot collect so you count time that time.

[brokenomore]

One thing to look at to make sure the taxes are dischargeable is were they eligiible for discharge when you filed your chapter 13? Because the time you were in the chapter 13 tolled the time that makes them eligible for discharge.
Meaning you can't count the 3-year window and 2-year window time when you are in your chapter 13. During a bankruptcy the IRS cannot collect so you count time that time.

Thank you for pointing this out.

I was behind in my tax filings and filed them just before the chapter 13 filing.

So what you're saying is that I have to add that time we were in chapter 13 to the two years?

[biotechsolution]

yes. because the time you were in the 13 tolled your 2-year time for the taxes to be discharged. So you can't count the time in the chapter 13 for you 2-year time period.