Tax Question Second Post Where are my Chapter 11 GURUs?
Posted: Wed Jan 27, 2010 7:36 am
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Hello Jeff -
I started to answer your earlier post, then abandoned the effort because I
couldnt come up with the correct answer.
At one point during my 10 years at IRS, I came across a case in which the
penalties were dischargeable, but not the underlying tax. I tried, but
could not re-create that research.
On 1/26/10 6:40 PM, "jbsesq1965" wrote:
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>
>
>
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> I posted a question several weeks ago and did not see a single response. I
> would like to try this one again.
>
> I always understood the general rule was that if taxes are non-dischargeable
> under any provision of the Code then the penalties and interest associated
> with those taxes are equally non-dischargeable. However, there is still a
> nagging question in my mind as to whether or not in Chapters 13 or 11 either
> or both of the penalties and/or interest on non-dischargeable tax obligations
> can be discharged. I have PC who has some rather eye popping income tax
> liabilities and payroll tax liabilities. He has some good income and could
> probably formulate a Chapter 11 Plan to retire all of the debt within 6 years.
> The amount of his plan payments would vary drastically, however, based upon
> whether the pre-petition penalties and interest (or some portion of them)
> could be discharged. I don't think the debtor qualifies for Chapter 13 based
> upon debt limitations, but it might be possible for the debtor to pay down
> some of his debts to get under the Chapter 13 debt limitation if that would
> benefit him.
>
> Thank you for your input.
>
> Jeff Smith
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>>> - John D. Faucher
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Re: [cdcbaa] Tax Question Second Post Where are my Chapter 11 GURUs?
Hello Jeff -
I started to answer your earlier post, then abandoned the effort because I couldn’t come up with the correct answer.
At one point during my 10 years at IRS, I came across a case in which the penalties were dischargeable, but not the underlying tax. I tried, but could not re-create that research.
On 1/26/10 6:40 PM, "jbsesq1965" <jsmith@cgsattys.com> wrote:
I posted a question several weeks ago and did not see a single response. I would like to try this one again.
I always understood the general rule was that if taxes are non-dischargeable under any provision of the Code then the penalties and interest associated with those taxes are equally non-dischargeable. However, there is still a nagging question in my mind as to whether or not in Chapters 13 or 11 either or both of the penalties and/or interest on non-dischargeable tax obligations can be discharged. I have PC who has some rather eye popping income tax liabilities and payroll tax liabilities. He has some good income and could probably formulate a Chapter 11 Plan to retire all of the debt within 6 years. The amount of his plan payments would vary drastically, however, based upon whether the pre-petition penalties and interest (or some portion of them) could be discharged. I don't think the debtor qualifies for Chapter 13 based upon debt limitations, but it might be possible for the debtor to pay down some of his debts to get under the Chapter 13 debt limitation if that would benefit him.
Thank you for your input.
Jeff Smith
- John D. Faucher
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