Post Petition Tax Claims in Chapter 13

15 Oct Post Petition Tax Claims in Chapter 13

A taxing authority has a special right to file a claims for postpetition taxes under 11 U.S.C. 1305(a). Such a claim is allowed and entitled to priority unless a debtor successfully object to it.

A taxing authority will not always file a claim for postpetition taxes if a debtor is making payments outside the plan. However, when faced with a claim for taxes that become payable while a case is pending it is often necessary to file a motion under 11 U.S.C. 1329 to modify the plan in order to provide for the postpetition tax claim. One reason for this is because the confirmation order of the original plan may set out a minimum percentage for general unsecured creditors which will not be met once the new tax claim is in the mix.

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