Chapter 13 – IRS Claim; Plan Confirmation 

Posted: 1:00 am Mon, December 21, 2009
By admin

1. Where the debtor’s counsel purported to tender all of the debtor’s personal property to the IRS in satisfaction of its secured claim; and the IRS refused to accept the tender, instead insisting on the allowance and payment of a secured claim via the debtor’s performance under the confirmed plan; the court concludes that a vitiation of secured status through surrender of collateral is not available against a federal tax lien through the Chapter 13 process in the manner proposed by the debtor.

2. Where the IRS assigned a value of $10,100 to its secured claim by totaling the values the debtor had assigned to her personal property (household goods, personal effects, and clothing) and automobile in her asset schedules; at the hearing on her claim objection, the debtor testified that (1) she had investigated the value of her personal property by going to garage sales and Goodwill stores and found that the personal property was worth no more than $1,630 and (2) she had investigated the value of her auto and found that it was worth $500; and the IRS did not produce any evidence regarding value; the court concludes that the IRS’s security is valued at $2,230.

3. Where the debtor has been derelict in her obligations as a taxpayer pre-petition; and “[t]his case presents all too much of a possibility that the Debtor would merely roll her substantial pre-petition tax debts over to an accumulation of new, post-petition ones, while she had the protection of the court”; the court concludes that the debtor cannot satisfy 11U.S.C. sec. 1325(a)(3) unless she includes “tax compliance language” in any further modified plan.