Chapter 13 and Tax Refund

What is the name of your state? Alabama
Our Chapter 13 hearing was final in April 2004. We listed Tax Debts that we had been paying installmenta to the IRS for Tax years 94, 95 & 96. It is my understanding that tax debts incurred in the last three years cannot be put onto a bankruptcy case. Since these were many years ago, and the lawyer put them into our Chapter 13 payment plan, are we entitled to our tax refunds now? I filed an extension for 2003 and recently filed my return and of course, no refund. I am wondering if they can keep our refund for the duration of our CH. 13 payments...if so, that will be much more than the debt. Thanks for your insight into this matter.
Kathy

[Ladynred]

Tax debts less than 3 years old cannot be DISCHARGED, but they are put into Ch 13 plans all the time. The IRS is a priority creditor they get paid at the top of the list. Are your IRS payments being made thru the Ch 13 plan ?

Yes the IRS payments are being made through the Chapter 13 plan. So I am assuming that they will keep our refund unitl the debt is paid. Then the next question is, are they going to keep the entire amount of the debt or just the percentage amount that all the creditors settled for?
Thanks

Well, I have some probable good news. I talked with the IRS Agent and she said that she did not request to keep our refund so it looks as if it may be processed very soon. Thanks for your help!