IRS collecting...again

[CarrieOakey]

Quick recap:

Discharged three years worth of back taxes last year in no-asset Ch 7.

Received Release Of Lien a few weeks after discharge.

Filed taxes two weeks ago, and now IRS wants to apply my refund to the discharged taxes.

Doesn't the Release Of Lien certificate prevent them from doing this?

[tdawg]

Quick recap:

Discharged three years worth of back taxes last year in no-asset Ch 7.

Received Release Of Lien a few weeks after discharge.

Filed taxes two weeks ago, and now IRS wants to apply my refund to the discharged taxes.

Doesn't the Release Of Lien certificate prevent them from doing this?

Did the IRS send you something saying that the taxes were discharged? And I'm assuming you don't owe for any years that were NOT discharged. By the way, how do you know the IRS wants to apply your refund to the discharged taxes? Did they tell you that?

[forgotten]

If all of your outstanding tax liability was discharged in bankruptcy then you need to call the Treasury Offset Program call center at 800-297-0517.

Since the IRS obviously knew of the bankruptcy, as they were informed by the court when you filed against them, they should reverse the offset and issue the refund. Don't expect this to be a speedy process however.

[CarrieOakey]

Did the IRS send you something saying that the taxes were discharged? And I'm assuming you don't owe for any years that were NOT discharged. By the way, how do you know the IRS wants to apply your refund to the discharged taxes? Did they tell you that?

They have already applied the refund...

The Trustee confirmed the taxes were discharged, I do not owe further taxes and I do have the IRS Cert. of Release Of Federal Tax Lien for all three years.

[CarrieOakey]

If all of your outstanding tax liability was discharged in bankruptcy then you need to call the Treasury Offset Program call center at 800-297-0517.

Since the IRS obviously knew of the bankruptcy, as they were informed by the court when you filed against them, they should reverse the offset and issue the refund. Don't expect this to be a speedy process however.

Nothing is ever speedy with the IRS, alas.

(well, unless you owe THEM money )

Thanks so much for that number - guess who I'll be calling tomorrow?

Thank you both for your responses!

[DebtHater]

Since when is the IRS bankruptable???

[DebtEnder]

Without going back and citing the section of code the short answer is if you have filed, not refiled recently, and otherwise owed on taxes from 3 years ago those taxs can be discharged in bk7.

[CarrieOakey]

Update!


I spoke to an actual human with the Tax Advocacy folk...who was incredibly helpful. When the CROFTL was mentioned in the conversation, she stopped dead in her tracks and consulted with her supervisor.

Two minutes later, she said her supervisor said it was a clerical error, and would reverse the offset and the remaining refund amount should be with me in 4-6 weeks.

I never, ever, ever wanted to know this much about tax law but heck - I'm very glad I did the research.

So, hopefully now it really IS over and done with. Though of course I'm not going to be completely relaxed until that check is in my little hands ;)

[CarrieOakey]

Since when is the IRS bankruptable???

Are you asking how back taxes can be discharged?

If so there is a VERY helpful thread here