TAX DISCHARGE? BEWARE EQUITABLE TOLLING
(Endnotes)
1 NACBA Journal Summer 2016
2 This topic is explored in Part 2 in
my book, King’s Discharging Taxes
in Consumer Bankruptcy, ¶ 2.9(c)
(5)(ii). KingLawPublishing.com,
TaxPublishing.com.
3 The other two rules: the tax return
must have been not fraudulent, and
the taxpayer must not have attempted
tax evasion. 11 U.S.C. § 523(a)(1)(c).
4 Do not confuse the due date with the
date the return was actually filed.
5 11 U.S.C. § 507(a)(8)(A)(i)
6 11 U.S.C. § 507(a)(8)(A)(ii)
7 11 U.S.C. § 523(a)(1)(B)(ii)
8 11 U.S.C. § 507(a)(8)(G) a so-called
hanging paragraph.
9 Section 507(a)(8)(G)
10 11 U.S.C. § 507(a)8)(G).
11 e.g., re Brickley, 70 B.R. 113
(B.A.P. 9th Cir., 1986) (“Congress
did not intend to allow tax avoidance
through bankruptcy by permitting the
discharge of the debtor before the
taxing entity has had a fair opportunity
to collect taxes due.”). This opinion
does not mention “equitable.”
Cir.1986); United States v. Richards
(In re Richards), 994 F.2d 763 (10th
Cir.1993). In re West, 5 F.3d at 426-
27; In re Taylor, 81 F.3d at 22-24; In
re Montoya, 965 F.2d at 557-58; In re
Richards, 994 F.2d at 765-66. too much: “Because the IRS sua
sponte decided that equitable tolling
was warranted in this case which
thereby forced the Debtors to bring
this matter before the Court, the IRS
has “unclean hands”.
16 Putnam v. Internal Revenue Serv.
(In re Putnam) (Bankr.E.D.N.C., 2014) 20 In re Grimes, 147 B.R. 307, 316
(Bankr.E.D.N.Y.1992)
17 In re Gilmore, 198 B.R. 686
(Bankr. E.D. Tex., 1996) 21 In re Grimes, 147 B.R. 307, 316
(Bankr.E.D.N.Y.1992)
18 Esta Later Charters, Inc. v.
Ignacio, 875 F.2d 234, 239 n. 11 (9th
Cir.1989).
19 Gilmore, at 690; The IRS assumed
12 In re Hollowell 222 B.R. 790
(Bankr.N.D. Miss 1998); Putnam
v. Internal Revenue Service, In re
Putnam (Bankr. E.D.N.C. 2014);
Ollie-Barnes v. Internal Revenue
Service (Bankr.M.D.N.C. 2014); In Re
Tibaldo 187 B.R. 673 (Bankr.C.D.Cal.
1995); In re Teeslink 165 B.R. 708
(Bankr.S.D.Ga. 1994); Matter of Stoll
132. B.R. 782 (Bankr.N.D.Ga. 1990).
13 Young v. United States 535 U.S.
43 (Supreme Ct. 2002), 122 S.Ct.
1036)
14 Nolan, fn 20.
15 In re Nolan, 205 B.R. 885 (Bankr.
M.D. Tenn., 1997), Montoya v. United
States (In re Montoya), 965 F.2d 554
(7th Cir.1992); West v. United States
(In re West), 5 F.3d 423 (9th Cir.1993) ,
See Brickley v. United States (In re
Brickley), 70 B.R. 113 (B.A.P. 9th
20
CONSUMER BANKRUPTCY JOURNAL
Summer 2017
National Association of Consumer Bankruptcy Attorneys