Bankruptcy and Taxes

[staciemarie_98]

What is the name of your state? Texas

I filed Chapter 13 last month, and included my tax debt. I just receive a letter from the IRS stating I did not file returns for 1998 & 1999. I only keep my returns 7 years. My understanding of the Bankruptcy Code is that the IRS can only claim the amount owed for the last three years from the time you file. Am I wrong?

 

[azatty]

The IRS can claim all unpaid taxes. However, your Chapter 13 plan only has to provide for full payment, with interest, of claims entitled to priority under 11 U.S.C. §507. Priority claims include income taxes that become due (April 15 of the year following the tax year, e.g. 2005 taxes become due April 15, 2006) within three years of the petition date. When the IRS files its proof of claim, it will bifurcate the claim into two parts, "priority taxes" and unsecured tax claims (it will be broken out on the claim form just like that).