Wednesday, May 24, 2006
Bankruptcy Code 11 usc 523(a)1(B) (old law) may allow debtor to discharge tax debt even if debtor filed returns only after IRS had assessed the debtor's tax liability on its own; Eighth Circuit contributes to circuit court split rulingsDecision of the Day blog. The Eighth Circuit Court of Appeals rules that the IRS assessment before the debtor filed his tardy returns did not automatically disqualify the debtor from discharging otherwise eligible tax debts. Colsen v. Internal Revenue Service, 05-2476 (8th Cir., May 4, 2006). The Seventh Court, J. Posner held to the contrary. J. Easterbrook dissented in that case, taking the 8th Circuit's position.
Posted by stan_sipple at 2:57 PM