Question
Chapter 13 Involving Tax Debt - Legal Fee / Tax Preparation Deduction
I am currently in a Chapter 13 repayment plan. A significant portion of the plan involves tax debt and liability for taxes. This tax year my attorney had most of his legal fees disbursed to him from the trust, and I have heard that because the Chapter 13 proceedings involve taxes and tax debt I can deduct his fees. Is this correct? If so, is it a legal fee deduction or a tax preparation deduction? I've read IRS publication 908 multiple times and can't seem to figure this one out.
Thank you!
