Filing taxes when there is IRS debt being discharged

[kjg812]

I have two weeks to go until my 60 days are up. I am dsicharging a large IRS debt and attempting to disharge a small state debt. When would it be safe to file taxes? I am expecting a refund that I am hoping they don't try to keep.

Thanks
Kevin

[BKParalegal]

If it is dischargeable then the IRS will not take your refund. You can file anytime since it will be no less than 6 to 8 weeks before your return is processed.

Good luck

[gman]

To play it safe, why not wait until you are discharged to file your 2010 taxes?

Understand that you always have the risk of the UST coming after any asset up until 60 days have passed.

Granted, the risk is smaller, especially after 30 days have gone by, but why push it when you would be 100% safe waiting for your discharge?

[BKParalegal]

Or you can file it now, since the IRS knows the BK code inside and out since they helped write it and so you can get your refund early. With one stipulation, did the trustee no asset your case?

[chazdiezal]

I'm in the same boat....in my situation I'm discharging old IRS debt and the trustee has already file his no distribution report and i'm awaiting discharge. Am I safe to file taxes now and expect my refund to not be withheld?

[HHM]

You should be okay to file the return. The automatic stay prevents the IRS from offsetting prior taxes owed with your current refund. And if the taxes are dischargeable, its a good bet the IRS has already designated them as such.

[kjg812]

I just wanted to update I ended up filing on 2/13. Yesterday I went to the where's my refund to check status and it listed a code 1201 delay in processing. I called the number provided and spoke to the IRS rep. She informed me there was no delay and to expect a deposit on 2/25. The direct deposit hit my account this morning.