top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

I think I am in trouble, any advice please.

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    I think I am in trouble, any advice please.

    I filed c7 in 3/11, first meeting held 5/11 and continued to 6/11 held and concluded. Discharge came in 8/11, trustee report just came in at end of Dec and case closed Jan 2012. I was so happy it was over and I mean completely over.

    Now I get a letter from IRS. I forgot to add all my gambling wins, I thought for sure I got them all but I guess in the confusion of trying to get taxes filed and bk filed at the same time, I screwed up. I am freaking out and am sick to my stomach all over again.

    I have left a message for my attorney but no response yet. What do I need to do now?
    Please before anyone yells at me, I did not do it intentionally and I never used any kind of credit to gamble. I haven't used a credit card or anything else like that since 09.

    How bad is this going to hurt my bk now?

    #2
    This issue should not affect the BK, your BK is over.

    The issue is basically with the IRS, if the additional winnings will mean you owe tax, then you will need to pay.

    Pretty simple really.

    Comment


      #3
      Thank you so much. I do owe some but not much, I have sent it over to my accountant to look at. I already told him, even though it was all lost I will just pay it. I really do not want any trouble. Just to clarify, before I get sick, the mistake was made on my 2010 return, does that make a difference, since I was asked for two years of returns? Will I need to reopen the case and fix it on schedules or anywhere else on the petition? I really do not want to be in trouble with anyone.

      Comment


        #4
        You can always offset gambling winning with gambling losses. If you are a "scored" or "rated" player at a particular particular casino (or casino owner), they can print your winnings/losses for you. Then, just offset the winnings and losses. (The gross winnings are still income.)

        Oh, and before anyone asks... I'm not a real gambler. I spend maybe $200/year during my annual trek to Las Vegas. i was there recently for a conference and broke even. That's as much gambling that I had done in 2 years.

        You do not need to reopen your case for this. They were looking at your earnings to figure out what you make per year. They also look at the tax returns to figure out what dependents you claim as well as what other types of deductions you take. Those deductions and earnings help to validate what you put on the bankruptcy schedules.

        There is nowhere on the Schedules that asks you about your tax return.
        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.

        Comment


          #5
          To give you peace of mind and to be on the safe side, since this income was during a period reported to your attorney and trustee involving your BK, contact your attorney with the information.
          _________________________________________
          Filed 5 Year Chapter 13: April 2002
          Early Buy-Out: April 2006
          Discharge: August 2006

          "A credit card is a snake in your pocket"

          Comment


            #6
            Thanks everyone. I won't be able to speak with my attorney for two weeks, due to him being gone on family emergency. However, the paralegal said it is probably going to be an issue. I asked how bad and she just said I could possibly have my discharge taken away and have to convert to a 13. I guess because even though the money was lost it still counts as income so basically my means test was wrong. I don't understand any of this. She said she will discuss with attorney when he returns and have him call.

            I just thougt when case closes it's over and done with and no looks back. I feel terrible about this and this will just be another strain on my marriage. I don't know what else to do or think at this point. Again thanks for your responses.

            Comment


              #7
              I guess because even though the money was lost it still counts as income so basically my means test was wrong.
              So the winnings were sometime between 9/1/10 and 12/31/10 and therefore within that 6 month window? Yup, could be a problem but do not lose sleep over it at this time.

              Des.

              Comment


                #8
                Yes, lottery winnings are reported on Form 1099-MISC and is definitely income. You can offset this on your tax return by claiming your losses (against winnings -- no negative losses). The question is did it really mess up your income calculation?

                Des picked this out better than I did. When did you win this money and was it during the lookback for the calculation of the "current monthly income".
                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.

                Comment


                  #9
                  Thanks sir Des, I am trying not loose sleep but it is not working. I am terrified of what is going to happen, I am going to loose my mind. Yes, you are correct on the time frame. In case you are wondering I did not take a large some of money to the casino, it was a small amount but the wins went right back to them. I know I had a false sense of reality that some how that was going to solve all my problems. The only thing it has done is come back to bite me in the rear.

                  Comment


                    #10
                    Just broke, you must have been posting as I was. Yes, it was but nobody ever asked my when the winning came in. Most of it was on my tax return that was handed over to the trustee and never mentioned at all.

                    Comment


                      #11
                      What do you mean the wins went back to them? If you went in with $20 and left with $20... you didn't net any winnings; however, there may have been "reportable" winnings. I'm assuming you hit some jackpot (as they'd call it) in an amount over $600 and were issued a 1099-MISC right on the spot? (That's what they did to me at least... handed me the 1099 right there.)

                      The worse case scenario has already been given by your paralegal. Des would know more about what might actually happen. I think this was an "honest" mistake and you didn't try to hide it, but it could have some impact.

                      We are all curious... how much did you forget about?
                      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.

                      Comment


                        #12
                        Originally posted by jemma View Post
                        I did not take a large some of money to the casino, it was a small amount but the wins went right back to them.
                        Unfortunately this is what usually happens. Win a little and lose a lot. Never gamble - can't even walk into a casino - just don't believe in it.

                        But, still, do not lose sleep.

                        Des.

                        Comment


                          #13
                          Just Broke I forgot about 2,400.00. I mean that I lost it all back the same day. Either way, I am pretty sure I am headed to have my discharged revoked and then I will be right back where I started. We have no way to fund a chapter 13 at all, our income is only around 3,000 to 3,500 a month for a family of 5. Our expenses are all legit and just the basic stuff, we added nothing extra into our petition, only the things we actually pay for. Which is mortgage, utilities, food and gas for the vehicle. That leaves us with about $5.00 left over.

                          I still appreciate all the advice you all have given me. At this point, I am giving up, I have nothing left to fight for. I tried to do the right thing after getting my family into this mess but it seems every time another obstacle comes into play. Thank again.

                          Comment


                            #14
                            So will the trustee review future tax returns on a closed case? Not that I'm advocating any avoidance, rather just trying to understand how the Trustee would see this.

                            Comment


                              #15
                              I think that a one-time win that was all lost -- which would be corrected on your amended tax return (hint, hint) -- is still income as we discussed. However, it was "one-time" income, and it could be argued that your "look forward" (Schedule I and J) show that you didn't have enough to fund a Chapter 13.

                              Since it's $2,400 or $200/month... it's questionable if the UST will care. Hopefully they don't. Please keep us up to date! We are interested!
                              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.

                              Comment

                              bottom Ad Widget

                              Collapse
                              Working...
                              X