QUESTION
If I owe social security an overdue payment, can they take my tax return after filing for bankruptcy?
Asked on Feb 06th, 2016 on Bankruptcy - Ohio
3 ANSWERS
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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The government would probably have to move for relief from stay but they would likely prevail.
Answered on Feb 10th, 2016 at 7:25 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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The IRS can withhold money from your 2015 return, even if you file bankruptcy now. However, they would not be able to withhold the overdue payment from you 2016 and later returns.
Answered on Feb 08th, 2016 at 5:35 PM
This is one of my pet peeves ? your tax return is the paperwork you send to the IRS. Your tax refund is the money that is returned to as a result of submitting the paperwork. And yes, social security can intercept your refund in order to get repaid money you owe to this division of the US government.
Answered on Feb 08th, 2016 at 5:35 PM