IRS Outside Collection Agency

[Cardinal1957]

Now that and $5.00 will get you a cup of cofee. [/QUOTE

If I had 5 bux the IRS would take it. Sigh.

 

[Taxing Matters]

I didn't use an attorney, I couldn't afford one. I did the research and filed myself. I will check to see if I can reopen the bankruptcy in my district.

A lot depends on whether your bankruptcy case was a no asset case. If it was a no asset case then the rules vary by district. It appears that in the 11th Circuit, which includes Georgia, the rule is that you may reopen the bankruptcy to amend your debt schedules and include a debt that was excluded before so long as you can show that the debt was left off the schedules due to an honest mistake rather than an intentional decision to leave it off. The 11th Circuit Court of Appeals stated:

We accept, as the Seventh Circuit does, that under the new law the old prophylactic rule does not in a no-asset case any more deny a discharge to one who has failed to schedule for reasons of honest mistake, not “fraud or intentional design.” This would be an inequitable result, in the absence of prejudice. Hence, if Baitcher can show absence of fraud or intentional design, she should have her discharge, but this she could hardly expect to do, and did not do, on summary judgment.​

​

Matter of Baitcher, 781 F.2d 1529, 1534 (11th Cir. 1986). And a bankruptcy court in GA a decade later applied that decision in an unreported decision saying:

The Reese rationale is not viable in this district due to the Eleventh Circuit Court of Appeals decision in the case of Samuel v. Baitcher (In re Baitcher), 781 F.2d 1529 (11th Cir.1986). In that case our Circuit Court held that a no asset Chapter 7 case may be reopened to add an unlisted creditor where the debtor is able to show that the failure to list the creditor was unintentional and not the result of fraud. Id. at 1534. The court reasoned that in a no-asset Chapter 7 case “a notice is as a matter of law never untimely unless and until assets are discovered.” Id. at 1533. In doing so, the Eleventh Circuit rejected the notion that failing to list a creditor automatically renders a debt nondischargeable under 11 U.S.C. § 523(a)(3).3 Id. at 1534.​

​

In re Barrs, No. 94-52331, 1995 WL 448904, at *2 (Bankr. M.D. Ga. July 24, 1995). Later cases also seem to apply the same rule. So it appears that while the debt would not be automatically discharged if it was a no asset case like it would be in some districts, nevertheless you have the opportunity to go back to the bankruptcy court and get it covered by the discharge.

If your bankruptcy case was not a no asset bankruptcy case you may find that you cannot reopen the case to amend the schedules and get it included in the discharge because in that situation the IRS was not able to share in the distribution of assets from the bankrupt estate.

You might benefit from getting help and advice from a bankruptcy lawyer to ensure you get this right. Perhaps a legal aid clinic or law school legal clinic could help you for free or reduced cost if you lack the resources to pay a lawyer for that.

You might also want to provide the IRS with a copy of the discharge order and let the IRS know that the liability was placed out to a private collector while you pursue this. That will likely cause the IRS to recall the debt from the private collector and put a hold on collection until the IRS attorneys and bankruptcy specialists can determine whether the liability was covered by the discharge. That may buy you time to get the motion filed to reopen the bankruptcy, if you are eligible to do so.

 

[quincy]

Here is a link to Georgia’s local rules. See page 57:
http://www.gamb.uscourts.gov/USCourts/sites/default/files/local_rules/CLERKS_INSTRUCTIONS.pdf

See page 57 for rules on archived and closed files, and on reopening closed files (FRBP 5010). Archived and closed files are (generally) kept at the Clerk’s Office for 2 years (space allowing) and then sent to Georgia’s Federal Records Center (FRC). Waiting more than 2 years to reopen a case can result in more fees.

 

[NeilTheCop]

Make sure the collection company is on the IRS list of companies they use.
https://www.irs.gov/businesses/small-businesses-self-employed/private-debt-collection
IRS scams are far too common.