2010 Tax Refund

[DesdemonaB]

Hello All

Opinion needed: My UST stated on her initial report she is pursuring my 2010 tax refund - I knew that; she stated so in the 341 meeting. Knowing this should i go ahead and file now and "get it over with" or should I wait till the begining of March as my 60 day deadline is 3.18.2010 in hopes of getting the discharge and hopefully the close of the case done as close to each other as possiable?

Knowing that I was going to lose the refund I made no plan for it, so there is no joy in filing this year. Anyone know if the check is mailed directly to the UST or do I need to forward it on? I filed pro se only reason I am asking.

[free2breathe]

I also filed pro se. I went ahead and filed taxes as soon as I was able and sent a copy to the trustee. I've just received a letter from the him outlining how much of our refund is due the estate, and asking for the rest of what we owe the estate (from bank balance and earned but unpaid wages) by the end of this month. In my humble opinion, it's better to get it over and done with, so the trustee can distribute the money and finish administering the case. I see it as that much closer to the "Closed" flag

I still am not sure if the check for our tax refund is coming here or going directly to the trustee. He has stated "You need to turn over your entire 2010 refund, if you receive it." The IRS did "freeze" the refund and said they were waiting for instructions from the trustee. Everything varies by state, district, trustee.

[DesdemonaB]

Thanks free2breathe

Well I am going to file this week - after reading what you say I started to think what if - worst fragment to ever say/think by the way - what if checks goes into limbo - meaning the IRS doesn't know where to send it, me or the UST. My taxes are pretty simple so I'm not worry about that -I worry about get the money to the UST in a timely and correct matter. Oh and try to the most cheapest state filing fee since it's free to file Federal.

[free2breathe]

It won't get stuck in limbo. It will either go directly to the panel trustee *not the UST, because the panel trustee is the one who will distribute the funds, or it will come to you and you will forward the check to the trustee. Because you filed pro se, it is completely acceptable for you to contact the trustee's office and ask them what the process is for you. Like I said, in our case, once the trustee received the copy of our tax return, he sent us a letter with further instructions.

[tcreegan]

Hi DesdemonaB,

Holding off in hopes it gets lost in the shuffle is a looonng shot, but what the heck....what is there to lose?

Filing the tax return close to discharge date won't matter on the tax refund, the trustee will keep the case open until the tax refund comes in. File on April 15th and see if your long-shot comes in.

If you are filing in Mich. aren't federal exemptions allowed? Feds have a wildcard where it seems Mich does not.

Anyhow, hope it all works out, be sure to keep us posted on the results!

Tom in Colo

[HHM]

Not even a LONG shot, it is NO SHOT.

The 60 day deadline has N-O-T-H-I-N-G to do with a case being an asset or no asset case. Your Trustee has already designated your case an asset case. There is NO CHANCE of it closing unless the Trustee expressly authorizes closure. Yes, you will receive your discharge on time, but that event is immaterial to the issue at hand.

File taxes ASAP and get it over with. The case will be OPEN for many months as it is while the trustee gathers proof of claims, files their reports, files a tax return on behalf of the estate, pays proof of claims etc. The sooner you file your taxes and get the trustee the refund, the sooner your case closes, period.

[DesdemonaB]

Not even a LONG shot, it is NO SHOT.

The 60 day deadline has N-O-T-H-I-N-G to do with a case being an asset or no asset case. Your Trustee has already designated your case an asset case. There is NO CHANCE of it closing unless the Trustee expressly authorizes closure. Yes, you will receive your discharge on time, but that event is immaterial to the issue at hand.

File taxes ASAP and get it over with. The case will be OPEN for many months as it is while the trustee gathers proof of claims, files their reports, files a tax return on behalf of the estate, pays proof of claims etc. The sooner you file your taxes and get the trustee the refund, the sooner your case closes, period.

Hi

I know that discharge date and close date are two different things - I guess I must not communicate very effectively what I was trying to say is based on her interm report all she wants is my tax refund(s) so knowing that I was just wondering do I go ahead and file now knowing I have more then 30 days before my discharge deadline just to get it over with. Part of me was thinking if I e-file early March I would have the check either in my hand or in the hands of my UST as close to my discharge date in hopes that she would get what she wanted and just close the case. Call it wishfull thinking.

I plan to file this week - like I said I already knew she was planning to take the refund back in December - so I made no plans for it. I will request paper check(s) - if the UST hasn't already filed anything with the IRS to "take/freeze/levy" whatever the correct term is I will then mail copies of the returns and the check(s) directly to her and just wait.

[HHM]

Doesn't work that way. The longer you wait, the longer it will take to close your case. There are dozens of things that go on behind the scenes with an asset case. An asset case doesn't close until the trustee is done paying creditors and files their final report, which can take months. The case does not close when the trustee gets the asset (which is what it sounds like you were assuming).