A different office of the Internal Revenue Service called the Special Procedures Section processes Federal tax returns filed by Chapter 13 debtors. The IRS does this to help them avoid accidentally issuing notices in violation of the automatic restraining order. However, it often results in tax refunds being delayed.

To be certain that you receive any refund in a timely manner, you should file your tax returns each year as early as you possibly can. If you owe any taxes for prior years, the refund may be kept by the IRS. If this happens, discuss it with your attorney immediately.

INSTRUCTIONS REGARDING INCOME TAX RETURNS AND REFUNDS

(latest Tax & Refund Letter from the Trustee)

IF YOU FAIL TO COMPLY WITH THE REQUIREMENTS REGARDING THE TURNOVER OF YOUR FEDERAL INCOME TAX RETURNS AND/OR REFUNDS, THE TRUSTEE MAY FILE A MOTION FOR DISMISSAL OF YOUR CHAPTER 13 CASE WITH THE BANKRUPTCY COURT.

  1. File your returns by the due date established by the Internal Revenue Service.
  2. Immediately upon filing your return, send a complete copy of the Federal Return (including all schedules), W-2 statements, 1099s, K-1, etc. (all papers you send to the I.R.S.) to your attorney who will provide a copy to the Trustee.
    • If you are not represented by an attorney, send a copy of your federal return to:
         Tammy L. Terry, 535 Griswold, Suite 2100 Detroit, Michigan 48226
    • Please redact (cross out) the social security numbers of the taxpayer(s), dependents, and names of dependents. If this data is not redacted, your return may be rejected and returned to you. This is to protect your Personal Information.
    • Include your case number on the first page of the federal tax return.
  3. If the Federal Return is not received by my office, the Trustee may file a motion to dismiss your case. The filing deadline for tax returns is April 15.
  4. Please review your Plan terms and if your Plan requires that you turn over the federal tax refund to the Trustee and you received a refund, you should:
    (1) Issue a check payable to Tammy L. Terry Trustee, and note in the memo 2019 Tax Refund; or
    (2) Endorse the actual refund check received from the IRS payable to Tammy L. Terry, Trustee.
    a. The address to mail the refund is: Chapter 13 Trustee – TLT, P.O. Box 2039 Memphis, TN 38101-2039.
    b. If you are unsure as to the tax return requirements, contact your attorney.
  5. If you have filed for an extension of time to file your returns, send a copy of the approved extension by May 1st to your attorney, who will provide a copy to the Trustee.
  6. If you receive an INTERCEPT, DELAY or ERROR notice, please send a copy to your attorney as soon as you receive it.
  7. If you have any questions regarding this information, please contact your attorney.