IRS Took My Stimulus.
By Rachel Lynn Foley, Kansas City, MO, Bankruptcy Attorney on Aug 2, 2008 in General Bankruptcy Information
If you are currently in a Chapter 13 Bankruptcy and you owe back federal taxes you need to double check your case immediately. If you are lucky enough to have received your stimulus payment in hand then do not worry.
But if you are still waiting for that check or if you have received notification that the check was intercepted than this blog is for you.The IRS can intercept the stimulus check for back taxes.
However, what I am finding is that the IRS has failed to update the Proof of Claim showing how much you owe. This results in a non-credit for that amount that was intercepted by the IRS. So potentially you could over pay the IRS and neither you nor they may figure this out until the completion of your Chapter 13 Plan. Good luck at that point trying to get your over payment back or credit for an ongoing tax year.
Therefore, if you are paying back federal taxes through your Chapter 13 Plan contact your attorney to see if you have received credit for that interception. So far the IRS has NOT updated any proofs of claims for my clients.
God says render unto Ceasar what is his but I do not think even he himself the almighty would agree that you should over pay the IRS.
Remember that knowledge is power and you must stay involved in your own bankruptcy so that you may regain financial control today. Read my article on, How do I track my progress in my Chapter 13 case?
Written by Kansas City bankruptcy attorney, Rachel Lynn Foley.
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