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After Bankruptcy

Lafayette, LA |

I filed Bankruptcy in Oct 2010. I received my discharged paper in Jan. 2011. This month my husband got a paper from the IRS saying we owe $1,ooo, because a w-2 was not filed and they send a letter to see if we agree or disagree. We agree with the changes and we filed our tax return for 2011. We now have to respond to the IRS by a certain date. I am worried if I am going to get my tax return this year, because of the bankruptcy. I was going to use it anyway to pay the IRS soon as I get. I do not owe anything and I am not in default on my student loan. Is my tax return will be withheld?

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Attorney answers 2


The IRS has the legal right to offset a portion of your tax refund (not your return) for 2010 (not 2011) to pay for the past due taxes from an earlier year.

However, it is possible that they may make a mistake and send you the entire refund owed in 2010, which you then may be required to turn over to your bankruptcy trustee.

Basically, it is up to the IRS to act, and it is impossible to predict with certainty what they will do, because they mistakes too!

Hope this perspective helps!


I'm a little confused of what your actual question is. But, if you're asking whether or my your 2010 tax refund is subject to your bankruptcy, from the facts you've provided, the answer is no. Since you filed back in October 2010, you were not entitled to a tax refund for the 2010 year until 2011. As such, your 2010 tax return is not an asset of your bankruptcy estate. You should be receiving your tax refund and it should not be witheld.