Tax refund while in Chap 13?

[hoang817]

Hello all,

I am going to have some refund this year and i was wondering whether the IRS will disburse the refund to me or they will keep them?

in my Chap 13 i have $60K of tax $$$ to pay

Thanks

[elim]

If you owe back taxes the IRS will apply your refund to the earliest defaulted filing year.

edit: they even take my state refund

[hoang817]

if they do that, will i pay less on my Chap 13 plan payment now?? because my payment plan included those back taxes.

thnks

[Anonymous]

I didn't owe any back taxes during my CH13 so I always got my refund.

[mynameainttracy]

That all depends on your trustee. Your attorney can give you a better answer because they should know how your trustee handles things and the specifics on your case.

[Anonymous]

I got mine during my Ch13. My atty explained it as the IRS is just like any other creditor; they can't lay their hands on your dough without going thru the courts. 

Now, you may want to let your atty know if you get it and see if he or she will notify the trustee of your windfall. 

[hoang817]

my atty just told me the IRS may hold half and will refund half to me...then i ask the atty next question - will i pay less for the month which they hold half of my tax refund? still waiting for his reply

[House1204]

I filed a chapter 13 and owed the IRS about $80k. I received my refund every year I was in the plan. The IRS did not take it. My plan was not 100% also.

[Grafton88]

I would check with your trustee or lawyer as to what is required.  My tax refunds went to the trustee who used the fund to pay my debts just like my regular payments.

[hoang817]

Hello Grafton,

if your refund went to the trustee just like teh regular payment - do you still have to pay for that month?