IRS Tax Lien After Chapter 7 Discharge

[Dogmatique]

Successfully discharged 1999, 2000, 2001 past due income taxes in a no-asset Ch 7 last year, for which there was a prior lien.

Three weeks later, received 688 (z) form which releases the IRS's claim to property, rights to property relating to those tax years (all years are specifically noted) - this essentially releases the lien, yes?

I just did this year's taxes, and now they want to apply part of the refund as they are still seeing tax debt from 1999.

I did manage to get the Trustee to confirm that yes, these tax debts were discharged.

Now I'm confused. Do they still actually have the right to intercept a post-petition refund to a debt which was discharged AND apparently included in the Release Of Lien?

I'm waiting on the Insolvency Division to call back (but I'd prefer not to wait till I'm retired...), but could use a bit of help!

[Mr. Knowitall]

If the debts were discharged, and the IRS has confirmed the discharge, then you're probably looking at a clerical error.

[Dogmatique]

If the debts were discharged, and the IRS has confirmed the discharge, then you're probably looking at a clerical error.

Thank you! I do hope so. By cripes, I hope so!

[Betty3]

I hope so too - it seems so.

[Dogmatique]

So...

...IRS is claiming that they can, despite the ROFTL, apply this year's refund to the discharged taxes.

I do have the Tax Advocacy people involved but I'm just not understanding how this might be possible.

Anyone any idea?