Skip to main content

U.S. Court of Appeals for the Ninth Circuit Discharges Tax Debts Despite "Lavish" Spending

Forbes is reporting that the U.S. Court of Appeals for the Ninth Circuit has ruled in favor of a taxpayer seeking to discharge his tax liability through the bankruptcy process. In this case, Hawkins v. Franchise Tax Board, the court reversed the district court's decision that a "chapter 11 debtor's tax debts were excepted from discharge on the basis of his willful attempt to evade or defeat taxes under 11 U.S.C. Section 523 (a)(1)(C)." The debts included $19 million owed to the I.R.S. and $10.4 million to the California Franchise Tax Board based on proof of claims filed with the U.S. Bankruptcy Court. The article by Forbes discusses the potentially broad impact of this decision, which focuses on whether lavish spending itself constitutes "willful" under I.R.C. Section 523(a)(1)(C).

More information can be found regarding the discharge of tax debts through bankruptcy in Bloomberg BNA's Tax Management Portfolio Part VII (Portfolio No. 638-4th) (KF6289.A.1T35 no. 683-4th) by Steven R. Mather and Paul H. Weisman. This is also available using the library's subscription to Bloomberg BNA Tax and Accounting Center (available from the law library's website using the drop-down menu under "Legal Databases") and BloombergLaw.com.

Comments

Popular posts from this blog

The Congressional Report on the Executive Authority to Exclude Aliens Released Days Before Immigration Ban

On January 27 President Donald Trump signed an Executive Order, Protecting the Nation from Foreign Terrorist Entry Into the United States. Four days earlier, on January 24, the Congressional Research Service released its own report:  Executive Authority to Exclude Aliens: In Brief.
To those unfamiliar, the Congressional Research Service (CRS) is a federal legislative branch agency, housed inside the Library of Congress, charged with providing the United States Congress non-partisan advice on issues that may come before Congress, including immigration.
Included in the report are in-depth discussions on the operation of sections of the Immigration and Nationality Act (INA) in the context of the executive power . Discussions of sections 212(f),  214(a)(1) and 215(a)(1) report on how the sections have been used by Presidents, along with relevant case law and precedents. Most interesting is the list of executive orders excluding some groups of aliens during past presidencies; the table all…

GAO Launches Government Transition App

Want to learn more about the upcoming presidential and congressional transitions? There’s an app for that. 

The Government Accountability Office (GAO) recently launched its Priorities for Policy Makers app (available free of charge for iPhone or Android), which is intended to “help President-elect Donald Trump and the next Congresstackle critical challenges facing the nation, fix agency-specific problems, and scrutinize government areas with the potential for large savings,” according to Gene Dodaro, Comptroller General of the United States and head of the GAO. The app allows users to search by agency or topic, and provides brief summaries of relevant issues as well as links to more detailed GAO reports. 

You can also find GAO priority recommendations on the agency’s Presidential and Congressional Transition web pages.