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New Contributor
Posts: 54
Registered: ‎06-11-2013
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BK7 IRS issue.

After filing for BK I took my taxes in to H&R Block. I had never filed for 2011, after they whipped them out I had them do a second look on my 2012 taxes. They found an $1800 mistake, instead of having to pay $1520 I'm to receive $280.


I just got a letter from the IRS that they are applying the refund to taxes I owed in 2002, taxes that are in fact being contested by the BK7. There's no way that I was ever going to see this money, I'm supposed to send any tax refunds to the trustee for disbursement. Even if the trustee wasn't getting it the funds would be going to pay other tax years not included in the BK (2010).


Should I notify the trustee of this situation?

Established Contributor
Posts: 1,036
Registered: ‎11-08-2011
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Re: BK7 IRS issue.

How did you file a Ch7 before you'd completed your 2011 taxes?  That's going to be a mystery.


If you had your 341 and signed the thing that gives the Trustee the right to your refunds, yes... give him/her a call.  Worst case scenario, you waste 3 mins of your life on a phone call.  Best case scenario, you don't accidentally get in trouble for BK violations.


This one's simple... call the trustee.


For what it's worth, you technically didn't get a refund.  But since the 2002 are IIB, there might be some weirdness there.  I hate taxes in BKs, those are one of the hardest parts of what I do.  Stupid friggin' tolling!  Who invented that garbage! 


Yeah, /me bitter about a BK tax situation from last month... Can you tell?



I am not an attorney and none of what I write should be construed as legal advice. For legal advice please consult an attorney.

Starting Score: ~470 preBK(8/2010)
Current Scores as of Late January 2016 All 700+. Last CR pull from a lender(housing) was mid-score 749.
Goal Score: 700+ - reached.
New Contributor
Posts: 54
Registered: ‎06-11-2013
0 Kudos

Re: BK7 IRS issue.

I had filed federal, but not state, 2 states actually. Since I was able to get the trustee the returns with the rest of the info, bank statements, paystubs and such it wasn't a problem.


I'll fax her a letter tomorrow with the letter the IRS sent me.


Thanks for the help.

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