IRS installment plan

[mmo1]

Hey all,

I cant seem to get a straight answer on this -

We have a IRS installment plan to pay back our past due income taxes. It is currently $500 a month.

Does this $500 count towards allowable expenses, to reduce disposable income when trying to qualify for chapter 7?

TIA!

[SMinGA]

If its something you'll have to pay after discharge, it counts. (I know there are some circumstances that can make IRS debt dischargeable. Don't understand the requirements.)

[gmk]

For the means test it actually figures in in 2 places. Line 27 is where you list your taxes paid on a monthly basis looking back. If you are having taxes withheld and you are also making installments to the Feds or the State, in your look back you would enter them here - Line 27.

Also, on line 44 "Payments on prepetition priority claims" you would take the balance of all taxes owed, lump them together and divide by 60.

Since we owe the IRS a small pile of treasure, this helped us get under the means test.