Third Circuit holds Bankruptcy Court lacks power in Chapter 7 proceeding to direct allocation of tax payments

Article Abstract:

The 3rd Circuit in United States v Pepperman ruled that the bankruptcy court does not have the power to allocate tax payments. This ruling differed from the 1990 US Supreme Court Energy Resources decision. The 3rd Circuit explained this difference by stating that the corporate reorganization plan in Energy Resources would not have succeeded had the bankruptcy court not allocated some of the monies to pay trust fund liabilities. Pepperman was a liquidation, not a reorganization, moreover, Bankruptcy Code 105 does not give the court the authority to create rights not given in the Code.

Liquidation, Allocation (Taxation), Tax allocation, Bankruptcy courts

---

Tax consequences taken into account in determining whether to allow bankruptcy trustee to "abandon" property

Article Abstract:

A bankruptcy court denied a bankruptcy trustee the right to abandon three encumbered properties under Bankruptcy Law section 554 because the abandonment would not relieve the tax burden and would deny the debtor a fresh start. The abandonment would be a taxable event, incurring tax liability for the estate that would cancel the tax benefits and would transfer the tax burden to the debtor who was eligible for a fresh start after the bankruptcy proceedings.

Abandonment of property, Abandonment (Law), Bankruptcy estates

---

Knowing violation of bankruptcy permanent injunction results in award of attorney's fees

Article Abstract:

Attorney's fees were awarded to a claimant against the IRS in the bankruptcy court decision of Moulton v. United States because the IRS consciously broke a permanent bankruptcy injunction. The court held the IRS to a definition of creditor in a case involving the personal bankruptcy plan of a married couple. An unanswered question concerns why the sovereign immunity waiver of the Bankruptcy Code did not cover the IRS.

Attorneys, Lawyers' fees, Privileges and immunities, United States. Internal Revenue Service, Bankruptcy

Similar abstracts:

• Abstracts: This time it's for real. Colour blindness in housing debate. Gummer sets homework
• Abstracts: Extension of privilege to accountants clouded, inter alia, by exclusion of advice relating to corporate tax shelters
• Abstracts: A very British coup. Railtrack's Feltham site goes to British Land. C&A looks to fashion discounters
• Abstracts: Pagers: much more than that timely beep. Computer, take a letter: voice recognition software. Cell phones and pagers: Come in Mr. Spock
• Abstracts: The impact of US real estate on the change in employer/employee relationships. Global economic trends in the post-Y2K era

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.