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US Trustee's Office . . threatening to file motion to
Basically 1304(c) states the business debtor 1304(a) must perform the duties of the trustee specified in 704(a)(8)704(a)(8) states the Trustee must file reports and summaries of the operation, including statement of receipts & disbursements, & such other information as the UST or court requires. I understood the question referenced the UST required Debtor make a payment, not file a report. So the issue is whether the UST can force the debtor to prepay the taxes.
Question: If the Debtor submitted statements of receipts & disbursements and used the quarterly statement as the basis for the estimated quarterly tax due, then the debtor, by paying the tax by quarters is simply saving itself from the larger payment in April, because it paid taxes in the correct amount each quarter, this would allow the ongoing payment to be adjusted each quarter. I.E. if there is a quarter with less income then quarterly amount reduced to adjust what is estimated to be due by the end of the year. If the Debtor is not able to pay quarterly taxes adjusted to the immediate income then the next question is, how is the debtor going to be able to pay the total annual tax due in April?
If the reason the Debtor cannot make the quarterly payments is because of the budget, and the Trustee filed a MTD based on failure to pay estimated quarterly taxes, then an opposition to the MTD must be filed and if necessary a MOMOD to adjust the budget. That way the court will have an opportunity to weigh in on whether the debtor must pay estimated quarterly taxes or face dismissal, especially since prepayment of quarterly taxes is not a BK Code requirement.
Law Office of Catherine Christiansen
Certified Specialist, Bankruptcy Law, The State Bar of California Board of Legal Specialization.
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Thanks to Matt Resnik who essentially said look at 1304 and 704(a)(8). If
the debtor is considered to be engaged in business within the meaning of
1304, then the US Trustee and standing Trustee can cause a lot of problems
even if there may not be a technical requirement to file taxes.
I think that in general, Chapter 13 is so loose with their rules that if
it's not a tremendous benefit to your client, you should have him comply.
Last thing the bar would want is strict requirements which Riverside is
converging towards.
Sincerely,
*Michael Avanesian, Esq. *
Simon Resnik Hayes, LLP
15233 Ventura Blvd., Suite 250
Sherman Oaks, CA 91403
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On Wed, Apr 22, 2015 at 11:12 AM, 'Mark J. Markus' bklawr@yahoo.com
[cdcbaa] wrote:
>
>
> I agree. However, to the best of my knowledge, estimated tax payments are
> essentially voluntary. The actual tax obligation does not arise until
> April 15 of the following year. You can be penalized for not having paid a
> sufficient amount of estimated taxes, depending on what your income for the
> year ends up being, but the taxes are not owed/due until April 15 of the
> following year. So while I can understand the argument the Trustee might
> be making, I would argue that the M2D is premature. It assumes the debtor
> is not going to be able to make the required post petition tax payment when
> it is due, and if that's the criteria, most Chapter 13 cases would never be
> confirmed (which would fit nicely in Riverside it seems).
>
>
>
> *************************
> Mark J. Markus
> Law Office of Mark J. Markus
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>
> On 4/22/2015 9:55 AM, cdcbaa cdcbaamailbox@gmail.com [cdcbaa] wrote:
>
> trying to be this strident with a chapter 13 trustee probably won't work.
> A debtor is required to make quarterly payments to the Irs, not by the bk
> code but by the irc. I reread through chapter 13 to see if anything was
> added in bacpa to require current taxes to be paid on a current basis, but,
> like Mike, found nothing. But, "Know they judge," is the operative phrase
> here. There are a few chapter 13 judges that would consider the operation
> of a chapter 13 estate, without paying current taxes, illegal. One of
> those might dismiss the case.
>
> Dennis
>
> Dennis McGoldrick, 350 S. Crenshaw Bl., #A207B, Torrance, Ca 90503
> 310-328-1001-voice
> [image: cid:part1.03050307.05030101@bklaw.com]
>
> On Apr 22, 2015, at 6:50 AM, Catherine Christiansen
> christiansenlaw@yahoo.com [cdcbaa] wrote:
>
>
> File a motion to modify the plan to include the quarterly tax debt
> payments.
>
>
> Law Office of Catherine Christiansen
> Certified Specialist, Bankruptcy Law, The State Bar of California Board of
> Legal Specialization.
>
>
>
>
>
>
>
>
> On Tuesday, April 21, 2015 10:01 PM, "Michael Avanesian
> michael@avanesianlaw.com [cdcbaa]" wrote:
>
>
>
> Keep in mind I have virtually no experience in Chapter 13 land and I
> only really looked at the code, not many cases.
>
> If you consider section 346, the tax isn't even owed by the Estate unless
> a proof of claim is filed. So what standing does the Chapter 13 Trustee
> have to raise this issue? None.
>
> In fact, Congress designed Chapter 13s to allow debtors to not pay these
> taxes. Otherwise, what purpose does 1305 serve?
>
> Also, Congress understood what it was doing when it decided not to
> bifurcate the debtor from the Estate with respect to taxes (as opposed to
> Chapter 11). This is evidenced by its enumeration of "cause" under the two
> Chapters. Congress purposefully put nonpayment of taxes as cause for
> dismissal under Chapter 11 and not under Chapter 13.
>
> As further evidence, Congress made filing of prepetition taxes a
> requirement of Chapter 13. 1307(e). They left postpetition taxes out of the
> equation for Chapter 13.
>
> Finally, the code specifically allows taxing authorities to request the
> case to be converted/dismissed for failure to *file* postpetition taxes.
> Notably, not even the U.S. Trustee let alone Chapter 13 Trustee can file
> such a motion. See 521. More notably, it says file, nothing about paying
> the taxes!
>
>
> Sincerely,
>
> *Michael Avanesian, Esq. *
> Simon Resnik Hayes, LLP
> 15233 Ventura Blvd., Suite 250
> Sherman Oaks, CA 91403
> Tel: 818.783.6251 | Cel: 818.817.1725
>
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> or written to be used or relied upon, and cannot be used or relied upon,
> for the purpose of (i) avoiding penalties under the Internal Revenue Code,
> or (ii) promoting, marketing or recommending to another party any
> transaction or matter addressed herein.
>
> On Tue, Apr 21, 2015 at 2:31 PM, Craig J Beauchamp legallycraig@gmail.com
> [cdcbaa] wrote:
>
>
> Normally, the IRS requires self-employed individuals to file quarterly
> taxes if they are going to owe the IRS money each year. However, the IRS
> rarely enforces that provision. Note, however, owing the IRS each year is
> the equivalent of incurring new debt. If Debtor's Schedule J sets aside
> funds to be applied to those taxes, then Debtor would have an obligation to
> either escrow those funds for tax purposes. Paying quarterly would mean no
> debt on April 15th.
>
> I am not sure the TR can dismiss for failure to file, but this is what
> I've been told by one TR in the past is the rationale for the request for
> compliance.
>
>
>
> Craig J. Beauchamp, Esq.
> Of Counsel
> Law Offices of Victor W. Luke, APLC
> (714) 835-5091
> (714) 835-5763
>
> Craig J. Beauchamp, Esq.*
> Attorney at Law
> PO Box 25857
> Santa Ana, CA 92799
> (949) 689-9709
> (949) 269-6421 fax
> Legallycraig@gmail.com
>
> * Licensed in CA
>
> On Tue, Apr 21, 2015 at 2:00 PM, R Grace Rodriguez rgracelaw@gmail.com
> [cdcbaa] wrote:
>
>
> Anyone heard of this? Can they do this?
>
>
> R. Grace Rodriguez, Esq.
> Full service Real Estate Attorney
> California State Bar
> Certified Bankruptcy Specialist
> OFF: (818) 734-7223
> CEL: (818) 554-9922
>
>
>
>
>
>
>
>
Thanks to Matt Resnik who essentially said look at 1304 and 704(a)(8). If the debtor is considered to be engaged in business within the meaning of 1304, then the US Trustee and standing Trustee can cause a lot of problems even if there may not be a technical requirement to file taxes.I think that in general, Chapter 13 is so loose with their rules that if it's not a tremendous benefit to your client, you should have him comply. Last thing the bar would want is strict requirements which Riverside is converging towards.Sincerely,(818)332-1180 (fax)
web: http://www.bklaw.com/
Certified Bankruptcy Law Specialist--The State Bar of
California Board of Legal Specialization
This Firm is a Qualified Federal Debt Relief Agency
The post was migrated from Yahoo.
File a motion to modify the plan to include the quarterly tax debt payments.
Law Office of Catherine Christiansen
Certified Specialist, Bankruptcy Law, The State Bar of California Board of Legal Specialization.
The post was migrated from Yahoo.
Did the IRS contact the UST? How did this come up? Does the confirmation
order provide any guidance? Does it say that the debtor has to make
quarterly payments or it's a material default under the plan? Is the
Debtor currently postpetition delinquent on taxes?
Holly Roark
Certified Bankruptcy Specialist*
*and Sports Lawyer*
holly@roarklawoffices.com **primary email address**
www.roarklawoffices.com
Central District of California - Consumer Bankruptcy Attorney
1875 Century Park East, Suite 600 Los Angeles, CA 90067
T (310) 553-2600; F (310) 553-2601
*By State Bar of California Board of Legal Specialization
**Counsel for Chapter 13 Trustee Kathleen A. McCallister (Idaho) T (208)
922-5100
On Tue, Apr 21, 2015 at 3:08 PM, 'Webblaw Earthlink' webblaw@earthlink.net
[cdcbaa] wrote:
>
>
> Are the quarterly estimated payments on schedule J?
>
>
>
>
>
> Best regards
>
> Larry Webb
>
>
>
> [image: blslogo]
>
> California Board of Legal Specialization
>
> Certified Specialist in Bankruptcy Law
>
>
>
> State Bar of California 229344
>
> Central District California
>
> "A Debt Relief Agency"
>
>
>
>
>
> Check out my Blog
>
> Webblaw@gmail.com
>
> Law Offices of Larry Webb
>
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>
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>
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> The following notice is required by the United States Supreme Court's
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>
>
>
>
>
>
> *From:* cdcbaa@yahoogroups.com [mailto:cdcbaa@yahoogroups.com]
> *Sent:* Tuesday, April 21, 2015 2:01 PM
> *To:* cdcbaa@yahoogroups.com
> *Subject:* [cdcbaa] US Trustee's Office . . threatening to file motion to
> dismiss if Chapter 13 Debtor doesn't make QuarterlyEstimated Tax payments
> (Self employed debtor)
>
>
>
>
>
> Anyone heard of this? Can they do this?
>
>
>
>
>
> R. Grace Rodriguez, Esq.
>
> Full service Real Estate Attorney &
>
> California State Bar
>
> Certified Bankruptcy Specialist
>
> OFF: (818) 734-7223
> CEL: (818) 554-9922
>
>
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>
Did the IRS contact the UST? How did this come up? Does the confirmation order provide any guidance? Does it say that the debtor has to make quarterly payments or it's a material default under the plan?class"gmail_extra">Holly RoarkCertified Bankruptcy Specialist*and Sports Lawyer
holly@roarklawoffices.com**primary email address**
www.roarklawoffices.com
Central District of California - Consumer Bankruptcy Attorney
1875 Century Park East, Suite 600 Los Angeles, CA 90067
T (310) 553-2600; F (310) 553-2601
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