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  1. #1
    Join Date
    Apr 2009
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    Default IRS Tax Lien After Chapter 7 Discharge

    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!
    An intelligent hell would be better than a stupid paradise - Victor Hugo

    Do not microwave grapes

  2. #2
    Join Date
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    Default Re: IRS Tax Lien After Chapter 7 Discharge

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

  3. #3
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    Default Re: IRS Tax Lien After Chapter 7 Discharge

    Quote Quoting Mr. Knowitall
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    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!
    An intelligent hell would be better than a stupid paradise - Victor Hugo

    Do not microwave grapes

  4. #4
    Join Date
    Apr 2007
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    Il.(near StL,Mo.)
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    Default Re: IRS Tax Lien After Chapter 7 Discharge

    I hope so too - it seems so.

  5. #5
    Join Date
    Apr 2009
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    Default Re: IRS Tax Lien After Chapter 7 Discharge

    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?
    An intelligent hell would be better than a stupid paradise - Victor Hugo

    Do not microwave grapes

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