Personal Bankruptcy ch 7, release of federal lien, current refund issues

[Proserpina]

Trying to be brief:

Successfully discharged back taxes in a no-asset Ch 7 bk filing last year.

Received "Release Of Federal Tax Lien" a few weeks later.

Now IRS wants to keep this year's refund to offset the discharged taxes...

Doesn't the ROFTL prevent this?

 

[jharris352]

The IRS can not do that. They can not collect on a discharged debt. Challenge it through their appeals process.

 

[Proserpina]

The IRS can not do that. They can not collect on a discharged debt. Challenge it through their appeals process.

I've currently got the Tax Advocacy folk involved. I suppose that's the first step, but I get the uneasy feeling that "they" are going to try to find some loophole..while I'm (being the eternal optimist!) hoping it's nothing more than a computer or clerical error...

Thanks so much for your response, j - I really appreciate it.

 

[jharris352]

No problem. If they try to find a "loophole" introduce them to a federal Motion for Contempt. When a Federal Judge discharges a debt and they continue to try to collect it he/she (the Judge) tends to take offense. This is true even if, maybe even especially if, it is the IRS.