Tax Returns and Tax Refunds
All debtors are required to provide a copy of your entire annual tax forms and any tax refund you receive to the Chapter 13 Trustee no later than April 30. This is an annual requirement while you are in bankruptcy. Pursuant to the bankruptcy code, you are required to fund your confirmed Chapter 13 plan with all of your disposable income. Your tax refund is deemed additional disposable income and will be distributed to the unsecured creditors in your case.
The tax refund will not be used against your monthly payment that is due; it is in addition to your monthly payment.
If you, or your attorney, can demonstrate that all or a portion of the tax refund is not additional disposable income, please do so in writing and attach any documentation to evidence your position. Any requests to keep the tax refund will not be considered unless the tax return is provided and if the refund is received, it also must be turned over while a determination on your request is being considered. If your request is approved, a trustee check will be issued for the refund.
In preparing your tax forms, you should not: (1) Incur any fees associated with receiving your tax refund, or (2) obtain your tax refund through “Refund Anticipation Loan” (RAL) or “Rapid Refund” or (3) apply the refund to the following years tax liability. Refund Loans are considered incurring new debt and are not allowed without express consent from our office or the bankruptcy court. We expect to receive the entire refund as shown on your tax return.
The tax forms and tax refund are to be provided on or before April 30th of each year (please notify us (by email, fax or mail as noted below) if you have extended your tax return). Failure to submit Tax Forms and/or Refund may result in your case being Modified or Dismissed.
- The Tax Forms must be sent to our offices by immediately forwarding them to your attorney for submission to our office through our secure portal. Please do not send tax forms with your payments, or to the payment address.
- The Tax Refunds from the IRS check should be endorsed on back to Douglas W. Neway, Trustee and sent to the payment address at P.O. Box 2079, Memphis, TN 38101-2079. Be sure to write your case number on the refund check to insure proper application to your case.