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Chapter Does a Chapter 13 plan preclude an IRS offset against debtor’s tax overpayment?

As reported by Robin Miller of CBAR, a Chapter 13 plan confirmation does not preclude IRS offset against debtor’s tax overpayment.

The nonbankruptcy right to setoff continues even after confirmation of a Chapter 13 plan. See In re Rivera, 345 B.R. 229 (Bankr. E.D. Cal. 2005). Similarly, the IRS’s procedures under 26 U.S.C. § 6402(a) for determining the amount of a debtor’s tax refund are not precluded by confirmation of the debtor’s Chapter 13 plan, even if the debtor’s plan provides for payment of the debtor’s tax debt. A plan cannot force payment of a refund unauthorized by tax law to the debtor while taxes are unpaid.

In re Pugh, 510 B.R. 862 (Bankr. E.D. Wis., May 27, 2014)