Search

In Neal Swanson, 121 TC No. 7 (2003), a case of first impression, the Tax Court ruled that "substitutes for return" (SFRs), which are prepared by the Service when the [...]

In Washington, 120 TC No. 8 (2003), the Tax Court unanimously ruled that it has jurisdiction under Sec. 6330(d)(1) to decide whether a bankruptcy court has discharged taxpayers from their [...]

FORECLOSURE: Mortgagor waived statute of limitations and discharge in bankruptcy defenses by failing to plead them as affirmative defenses. The Small Business Administration made a mortgage loan in 1993 and [...]

Revco LBO finding may bring slew of suits NEW YORK - A close examination of Revco's 1986 leveraged buyout turned up plenty of evidence that the deal was poorly conceived, [...]

When the real estate market was booming, many homeowners either borrowed heavily to buy in at the top or took out home-equity loans, which added to their debt. Now that [...]

The IRS issued a deficiency notice on Dec. 13, 2004 for P's 2002 Federal return. P filed for bankruptcy on Feb. 11, 2005. P filed a Tax Court petition on [...]

DISCHARGE OF SHARE OF PARTNERSHIP DEBT INCLUDED IN INCOME: The Internal Revenue Service has ruled that, when a bankruptcy court discharges a partner from his share of a partnership's recourse [...]

The Bankruptcy Reform Act of 1994 makes it more difficult for ex-spouses to use bankruptcy to avoid financial obligations to their former spouses. The type of obligation strongly affects whether it is dischargeable via bankruptcy, with alimony, child support, maintenance, and their equivalents not dischargeable. Debts regarding property division may be discharged, however, unless a complaint is promptly filed in bankruptcy court. Interests in property should be awarded to both spouses in a divorce.

The US Court of Appeals for the 11th Circuit ruled in Haas that the tax liability of a taxpayer that properly reported but failed to pay income tax could be discharged in bankruptcy. The IRS argued that section 523(a)(1)(C) of the Bankruptcy Code precluded tax liabilities from being discharged when the taxpayer willfully evaded the tax. The 11th Circuit opted for a narrower interpretation of the statute and found that it did not apply to the taxpayers decision to pay debts other than the income tax liability.