Once you file bankruptcy, the IRS files a document with the court called a proof of claim. It lists what the IRS says you owe, year by year, and how each amount should be classified. In a Chapter 13 case, that document drives your plan payment. In a Chapter 7 case with assets, it decides how the trustee divides the money.

Most people never look at it. That is a mistake.

What a proof of claim is

Federal Rule of Bankruptcy Procedure 3001(a) defines a proof of claim as a written statement of a creditor's claim, and requires it to substantially conform to Official Form 410. The IRS files one like any other creditor, broken out by tax period.

Here is the important part. Under Rule 3001(f), a properly signed and filed proof of claim is prima facie evidence of the claim's validity and amount. Under 11 U.S.C. § 502(a), a filed claim is deemed allowed unless a party in interest objects. Silence equals agreement.

When the IRS has to file

Government creditors get more time than everyone else. Under 11 U.S.C. § 502(b)(9) and Rule 3002(c)(1), a governmental unit's claim is timely if filed within 180 days after the order for relief. Most other creditors in Chapter 7 and Chapter 13 cases get 70 days.

There is a Chapter 13 twist. If you file a delinquent return under 11 U.S.C. § 1308 during the case, § 502(b)(9)(B) gives the IRS until 60 days after that return was filed to file its claim for that tax.

If the IRS misses its deadline in a Chapter 13, you are not necessarily better off. 11 U.S.C. § 501(c) lets the debtor file a claim on the creditor's behalf if the creditor does not timely file. People do this on purpose so a priority or nondischargeable tax gets paid through the plan instead of surviving untouched at the end.

How to read the IRS claim

The IRS divides its claim into three parts. IRM 5.9.13.19 describes the classification process.

Secured claim

The IRS lists tax as secured when it has filed a Notice of Federal Tax Lien before your case or has a right of setoff. IRM 5.9.13.19.2 states that the secured status is limited to the debtor's equity under 11 U.S.C. § 506(a). Check the value the IRS used. If it assumed equity you do not have, the secured number is too high. See secured tax claims in Chapter 13 and the 506(a) lien value.

Unsecured priority claim

This is tax the IRS says qualifies under 11 U.S.C. § 507(a)(8), such as income tax within the three-year or 240-day windows, or trust fund taxes. Priority claims must be paid in full in Chapter 13 under § 1322(a)(2). This is the number that most often moves your plan payment.

Unsecured general claim

Everything else, including older taxes outside the priority windows and most penalties. IRM 5.9.13.19.4 notes that penalties where the IRS did not suffer actual loss, and the interest on them, are classified here. For the difference between buckets, read priority vs general unsecured tax claims.

Estimated claims for unfiled returns

If you have unfiled returns, expect to see estimated amounts. IRM 5.9.13.18.2 describes how the IRS prepares claims reflecting unassessed liabilities for missing returns and then requests the missing returns. These estimates are not based on your actual income and are often far higher than the real tax.

The fix is usually simple and not optional: file the returns. Once the returns are processed, the IRS can amend its claim to reflect the actual tax. IRM 5.9.13 discusses amended claims after returns are filed and liabilities are determined. In Chapter 13, unfiled returns can also sink the case. See unfiled returns and Chapter 13.

Warning: An estimated IRS claim that nobody challenges can become the allowed amount your plan must pay. File the missing returns and make sure the claim is amended before your plan is built around a number the IRS guessed at.

The checklist

Pull your IRS account transcripts for every year on the claim. Then check each line:

  1. Tax years. Are all the listed years actually yours? Are any missing?
  2. Return due dates and extensions. These control the three-year rule. An extension can push a year into priority.
  3. Return filing dates. These control the two-year rule for late returns under § 523(a)(1)(B).
  4. Assessment dates. These control the 240-day rule. Additional assessments after an audit or amended return carry their own dates.
  5. Prior bankruptcies, offers in compromise, and CDP hearings. These can extend the priority windows. Make sure the IRS applied them correctly, and only for the right periods.
  6. Penalties. Penalties should generally not appear as priority unless they compensate for actual pecuniary loss under § 507(a)(8)(G).
  7. Payments and credits. Confirm pre-petition payments and refund offsets were applied.
  8. Secured value. Compare the secured amount to your real equity in property.

The bankruptcy discharge calculator can help you sort each year before you compare it to the claim.

How to object

If the claim is wrong, you or your attorney file an objection. Under Rule 3007(a), the objection and notice of hearing must be filed and served at least 30 days before the scheduled hearing, including service on the person the claim holder designated to receive notices. Local rules in your district add their own requirements.

The grounds are in 11 U.S.C. § 502(b). The most common one for tax claims is § 502(b)(1): the claim is unenforceable under applicable law. If the amount of the tax itself is wrong, 11 U.S.C. § 505(a) lets the bankruptcy court determine the amount or legality of a tax, penalty, or addition to tax, unless it was already contested and adjudicated before the case. That process is covered in asking the bankruptcy court to decide the tax.

Because the claim is prima facie evidence, you need actual evidence to rebut it: transcripts, filed returns, proof of payments. An objection that just says "I disagree" goes nowhere.

Often the best objection is a phone call

Many IRS claim problems are fixed without a hearing. Once returns are filed or errors are pointed out, the IRS frequently amends its claim. A formal objection is the backstop, not always the first move.

For background on how bankruptcy fits into tax resolution generally, see the getirshelp.com article on bankruptcy for tax problems.

If the IRS claim in your case does not match your transcripts, call (813) 229-7100 and have a tax attorney review it. Every case turns on its own transcripts and dates; this page is general information, not legal advice for your situation.

The IRS files its claim and assumes you will not read it. Prove it wrong.