[CNYBBA-LISTSERV] IRS Collections

[mcmarans at aol.com]

I have a case now where the Debtor has a profit sharing plan.  Bob Luciak told me that the IRS will recognize the exemption for the profit sharing and treat same as exempt during the bankruptcy.  Meaning that although the profit sharing account has 29000 in it as of the date of filing and the lien is for 80000, the IRS won't file a bifurcated claim for 29000 secured.  (Usually the IRS doesn't recognize exemptions for valuing the secured portions of their claims)  However, once the bankruptcy is complete and Debtor begins taking payments from his profit sharing plan later on, the IRS still has a lien on those disbursements and can take any moneys not necessary for Debtor's support.  I offered to pay the 29000.00 as secured through the plan to avoid issues post discharge, but Bob went back to his supervisors and they said couldn't do it.  Profit sharing, 401K and IRA's all have different rules per the IRS.  So if your consider this future disbursement future income, the IRS will be collecting on it and not limiting it to the amount in the profit sharing at the time of the BK filing.
 
Michelle C. Marans

 
 
-----Original Message-----
From: ruswick_law at yahoo.com
To: mswimelar at cnytrustee.com; cnybba at cnybba.org
Sent: Tue, 18 Jul 2006 9:33 AM
Subject: Re: [CNYBBA-LISTSERV] IRS Collections


Mark:
 
I want to clarify a point you made.  If there was a warrant filed, the discharge would be effective (assuming the taxes were of the dischargeable type) but the IRS would still have a lien on whatever property the debtor held at the time of the banrkruptcy.  I don't think the IRS could try to collect against post-petition income or property acquired post-petition.  Is that right?
 
Dick Ruswick

Mark Swimelar <mswimelar at cnytrustee.com> wrote:
Maybe the IRS filed a warrant and that would make them a secured creditor. If they are secured the discharge wouldn't apply to them. (It's called a warrant or levy, I can never remember.) You might want to call Bill Larkin at the US Attorneys Office. He's always helpful. Or Robert Lusicak or Sandy LaPlante at the Utica IRS office. That number is 793-8165. I guess I'd call Bob or Sandy first since they can pull this stuff up and probably give you a quick answer. Mark  




From: cnybba-bounces at cnybba.org [mailto:cnybba-bounces at cnybba.org] On Behalf Of Susan Esce
Sent: Saturday, July 15, 2006 2:13 PM
To: 'CNYBBA'
Subject: [CNYBBA-LISTSERV] IRS Collections


I was recently asked about the IRS trying to collect for old (some going back to the 80’s) income taxes in a discharged no-asset chapter 7.  The IRS was listed.  It was my understanding that taxes that were more than 3 years old and had been timely filed were discharged.  This isn’t the first time I’ve heard this complaint and it makes me wonder, on what is the IRS relying in trying to collect these?  Any recommendations on dealing with the IRS under these circumstances?  
 
Susan N. Esce, Esq.
Attorney at Law
10 Adler Drive
East Syracuse, NY 13057
315-431-0736
Fax: 315-437-9462
escelaw at cnymail.com
 
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