Consumer Bankruptcy Journal Summer 2017 - Page 20

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