Menu

The Fourth Circuit and also the Primacy of Refund Offsets in…

Preparing for a revenue tax obligation reimbursement for tax obligation year 2013, the Copleys noted the reimbursement as a homestead exception on their insolvency timetable prior to submitting their revenue tax obligation return. The Copleys had exceptional government earnings tax obligation obligations for tax obligation years 2008, 2009, and also 2010; the tax obligation financial obligation for 2008 and also 2009 was dischargeable in insolvency, while the financial obligation for 2010 was nondischargeable. The reduced court situation regulation is blended and also at times puzzling, in component due to the fact that it consists of instances in which the IRS countered tax obligation reimbursements to tire financial debt as well as likewise situations in which the Treasury made TOP offsets to nontax financial debt.

Revenue tax obligation reimbursement offsets have actually been a warm subject on Procedurally Taxing, particularly of late. Preparing for a revenue tax obligation reimbursement for tax obligation year 2013, the Copleys detailed the reimbursement as a homestead exception on their insolvency timetable prior to submitting their earnings tax obligation return. The Copleys had superior government revenue tax obligation obligations for tax obligation years 2008, 2009, and also 2010; the tax obligation financial obligation for 2008 as well as 2009 was dischargeable in personal bankruptcy, while the financial debt for 2010 was nondischargeable. The reduced court situation regulation is blended and also at times puzzling, in component since it consists of situations in which the IRS countered tax obligation reimbursements to tire financial obligation as well as additionally situations in which the Treasury made TOP offsets to nontax financial obligation. The Bankruptcy Code’s automated remain policy typically forbids countered versus prepetition financial obligations; nonetheless, in 2005, Congress passed BC 362(b)( 26 ), an exemption that enables the IRS to balance out a prepetition revenue tax obligation reimbursement versus a prepetition revenue tax obligation obligation.

Leave a Reply

Your email address will not be published. Required fields are marked *