US Trustee's Office . . threatening to file motion to dismiss if Chapter 13 Debtor doesn't make QuarterlyEstimated Tax p
Posted: Wed Apr 22, 2015 9:55 am
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
> On Apr 22, 2015, at 6:50 AM, Catherine Christiansen christiansenlaw@yahoo.com [cdcbaa] wrote:
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> File a motion to modify the plan to include the quarterly tax debt payments.
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> Law Office of Catherine Christiansen
> Certified Specialist, Bankruptcy Law, The State Bar of California Board of Legal Specialization.
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> On Tuesday, April 21, 2015 10:01 PM, "Michael Avanesian michael@avanesianlaw.com [cdcbaa]" wrote:
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> Keep in mind I have virtually no experience in Chapter 13 land and I only really looked at the code, not many cases.
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> 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.
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> In fact, Congress designed Chapter 13s to allow debtors to not pay these taxes. Otherwise, what purpose does 1305 serve?
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> 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.
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> 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.
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> 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!
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> Sincerely,
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> 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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> On Tue, Apr 21, 2015 at 2:31 PM, Craig J Beauchamp legallycraig@gmail.com [cdcbaa] wrote:
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> 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.
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> 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.
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> Craig J. Beauchamp, Esq.
> Of Counsel
> Law Offices of Victor W. Luke, APLC
> (714) 835-5091
> (714) 835-5763
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> Craig J. Beauchamp, Esq.*
> Attorney at Law
> PO Box 25857
> Santa Ana, CA 92799
> (949) 689-9709
> (949) 269-6421 fax
> Legallycraig@gmail.com
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> * Licensed in CA
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> On Tue, Apr 21, 2015 at 2:00 PM, R Grace Rodriguez rgracelaw@gmail.com [cdcbaa] wrote:
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> Anyone heard of this? Can they do this?
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> 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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