11 U.S.C. § 523

A return filed after tax assessment may qualify as a return under § 523(a)(1)(B)(i) if it was an honest and reasonable attempt to comply with tax law.

Ralph v. United States (In Re Ralph) · filed 2000-08-17(a)(1)(B)(i)

The Form 1040s filed by Donna Ralph on February 6,1995, were honest and reasonable attempts to satisfy the tax laws, and therefore constitute “returns” within the meaning of § 523(a)(l)(B)(i) of the Bankruptcy Code.

Section 523(a)(1)(C) makes tax debts nondischargeable when a debtor willfully attempts to evade them; it does not require a falsehood.

May v. Missouri Department of Revenue (In Re May) · filed 2000-08-15(a)(1)(C)

The case has no application to section 523(a)(1)(C) and, indeed, section 523(a)(1)(C) does not even require a falsehood as an element.

Section 523(a)(1)(C) makes tax debts nondischargeable when a debtor willfully attempts to evade or defeat the tax; it does not require a falsehood.

May v. IRS · filed 2000-08-15(a)(1)(C)

The case has no application to section 523(a)(1)(C) and, indeed, section 523(a)(1)(C) does not even require a falsehood as an element.

Section 523(a)(1)(C) excepts a tax debt from discharge when the debtor willfully evaded the tax; ability to pay is relevant to willfulness but is not required.

Grothues v. Internal Revenue Service · filed 2000-08-28(a)(1)(C)

As to the lack of a finding that the Grothues had the ability to pay the taxes, the key § 523(a)(1)(C) determination is whether debtor’s conduct is willful. Whether debtor has the ability to pay is, of course, an appropriate factor in making that determination, but it is not a litmus test.

Section 523(a)(1)(C) excepts a tax debt from discharge if the debtor made a fraudulent return or willfully attempted to evade or defeat the tax.

Grassgreen v. United States (In Re Grassgreen) · filed 1995-01-11(a)(1)(C)

Section 523(a)(1)(C) provides that, in order to establish nondischargeability, debtor must have made a fraudulent return or willfully attempted in any manner to evade or defeat such tax. ... Even if those doctrines did not apply to this proceeding, there is no dispute of material fact that plaintiff did not make a fraudulent return or willfully attempt in any manner to evade or defeat federal income taxes for the 1985, 1986 or 1987 tax years.

Section 523(a)(1)(A) excepts taxes from discharge when they fall within the priority tax categories specified in § 507.

Wernimont v. Iowa Department of Revenue (In Re Wernimont) · filed 1994-12-16(a)(1)(A)

For the tax liability to be nondischargeable, the IDOR must show that the taxes are of the kind or for the periods specified in §§ 507(a)(2) or 507(a)(7).

Section 523(a)(1)(B)(ii)’s two-year period for late-filed tax returns is suspended while a prior bankruptcy case is pending.

Jones v. United States (In Re Jones) · filed 1994-11-18(a)(1)(B)(ii)

We agree with the reasoning of the Tenth Circuit in Richards and hold that suspending the two year time period of Section 523(a)(l)(B)(ii) is within this court’s powers under Section 105(a).

Section 523(a)(1)(C) excepts tax debts from discharge when the debtor filed fraudulent returns for those taxes.

Rivers v. US BY AND THROUGH IRS · filed 1994-10-28(a)(1)(C)

For the above stated reasons, it is ORDERED, ADJUDGED and DECREED that the bankruptcy court's determination that Rivers had, in fact, filed fraudulent tax returns for the years 1985, 1986 and 1987 and, consequently, that Rivers' tax liabilities for those years are excepted from discharge pursuant to 11 U.S.C. § 523(a)(1)(C), be and is hereby AFFIRMED.

Section 523(a)(1)(C) excepts tax debts from discharge when the debtor files fraudulent tax returns.

Rivers v. United States ex rel. Internal Revenue Service · filed 1994-10-28(a)(1)(C)

For the above stated reasons, it is ORDERED, ADJUDGED and DECREED that the bankruptcy court’s determination that Rivers had, in fact, filed fraudulent tax returns for the years 1985, 1986 and 1987 and, consequently, that Rivers’ tax liabilities for those years are excepted from discharge pursuant to 11 U.S.C. § 523(a)(1)(C), be and is hereby AFFIRMED.

Section 523(a)(1)(C) excepts a tax debt from discharge when a debtor knowingly and deliberately fails to file required returns in a willful attempt to evade the tax.

Binkley v. United States (In Re Binkley) · filed 1994-10-03(a)(1)(C)

These conclusions of law as applied to the facts of the case at bar indicate that the taxes owed for the relevant years are excepted from the discharge granted in the bankruptcy case pursuant to § 523(a)(1)(C). Floyd Binkley’s testimony that he deliberately failed to file tax returns for 1979 through 1986 until the Internal Revenue Service called him into its offices, even though he knew he had a duty to do so, is sufficient to establish a willful attempt to evade or defeat the tax liabilities in question.

Section 523(a)(1)(C) does not bar discharge of unpaid taxes based solely on a failure to file returns when the debtor did not attempt to evade or defeat the taxes.

Miller v. United States (In Re Miller) · filed 1994-10-11(a)(1)(C)

There is no precedent in existing case law where the debtor merely failed to file returns and lost the protection of the general discharge based on Section 523(a)(1)(C). ... As such, this Court is satisfied that the Debtors did not attempt to evade or defeat the taxes and the outstanding unpaid taxes are not excepted from discharge pursuant to § 523(a)(1)(C) of the Code.

Section 523(a)(1)(C) makes tax debts nondischargeable when debtors voluntarily, consciously and intentionally fail to file returns and pay taxes despite having the means to do so.

United States v. Birkenstock (In re Birkenstock) · filed 1994-09-12(a)(1)(C)

Mr. and Mrs. Birkenstock had the wherewithal to file their returns and pay their taxes, and they failed to fulfill their obligation to do so. They did this voluntarily, consciously and intentionally. The court finds that the debtors willfully attempted to evade their tax obligations in violation of § 523(a)(1)(C) and accordingly that their tax liabilities to the plaintiff United States of America, are non-dischargeable pursuant to 11 U.S.C. § 523(a)(1)(C).

Section 523(a)(1)(C) excepts tax debts from discharge when a debtor willfully evades payment by concealing assets.

United States v. Haimes (In Re Haimes) · filed 1994-08-12(a)(1)(C)

Therefore, the debtor’s tax liability for the years 1979 through 1984 is determined to be nondischargeable pursuant to 11 U.S.C. § 523(a)(1)(C).

Section 523(a)(1)(A) excepts taxes from discharge when they fall within the priority categories of section 507(a)(7), including taxes assessed within 240 days before the bankruptcy petition.

Bracey v. Franchise Tax Board (In Re Bracey) · filed 1994-08-08(a)(1)(A)

The taxes were “assessed” more than 240 days prior to the bankruptcy petition, and were thus discharged under 11 U.S.C.A. § 523(a)(1)(A).

Section 523 excepts priority tax debts from discharge, leaving the debtor personally liable for post-petition interest on those debts.

Woodward v. United States, Internal Revenue Service (In Re Woodward) · filed 1990-04-13(a)(1)(A)

Section 523(a), however, excepts from discharge any debt for a tax if the tax is a priority claim as defined in § 507(a)(7). Here, the tax claims in question are priority tax claims. ... Accordingly, this court concludes that the plaintiff remains liable for accrued post-petition interest on the defendant’s pre-petition, priority, tax claim.

Section 523(a)(1)(C) excepts a tax debt from discharge when the debtor willfully attempts to evade or defeat payment of the tax.

Fernandez v. Internal Revenue Service (In Re Fernandez) · filed 1990-03-30(a)(1)(C)

Such conduct was a deliberate attempt to avoid payment of his tax liabilities and is nondischargeable under § 523(a)(1)(C).

Section 523(a)(7)(B) discharges a tax penalty if the transaction or event giving rise to it occurred more than three years before the bankruptcy petition, even if the underlying tax is nondischargeable.

In Re Joanne G. Burns, Debtor. Joanne G. Burns v. United States of America, Acting by and Through the Internal Revenue S · filed 1989-11-13(a)(7)(B)

A tax penalty is discharged if the tax to which it relates is discharged (in the precise terms of the statute, not nondischargeable) or if the transaction or event giving rise to the penalty occurred more than three years prior to the filing of the bankruptcy petition. Since the statute uses the disjunctive, a tax penalty that does not qualify for discharge under one of the two aforementioned circumstances may still qualify under the other.

Section 523(a) makes taxes from qualifying tax years nondischargeable in Chapter 7; the tax-year period is not a collection deadline.

In Re Deitz · filed 1989-10-03(a)

While those taxes are made non-dischargeable in a Chapter 7 case pursuant to 11 U.S.C. § 523(a), once again the period specified is not a “collections” period but identifies the tax years for which taxes will be nondischargeable.

Section 523(a)(1)(A) excepts a debtor’s liability for unpaid trust fund taxes from discharge.

In Re Clate · filed 1987-01-26(a)(1)(A)

We therefore find that the Debtor remains liable to the IRS for $6,236.67, which sum is nondischargeable, and that the $5,000.00 exemption claimed by the Debtor similarly remains liable to the IRS.

Tax debt within § 523(a)(7) and the post-petition interest that flows from it are nondischargeable.

Geving v. United States · filed 1986-12-24(a)(7)

Further, if the tax debt is nondis-chargeable, then the interest which flows from it is also nondischargeable. ... Since this tax debt is properly within the scope of 523(a)(7), it is nondischargeable, and its related ... interest in also nondischargeable.

Section 523(a)(1)(A)'s three-year period for tax debts excludes time during which a prior bankruptcy stay prevented the government from collecting.

Brickley v. United States (In Re Brickley) · filed 1986-12-17(a)(1)(A)

The issue is whether the time the government’s collection efforts were stayed by reason of the pending Chapter 13 case should be taken into account in calculating the reachback of 11 U.S.C. § 523(a)(1)(A). We hold that the time the government is stayed should be disregarded and AFFIRM.

Section 523(a)(1)(A) excepts a responsible officer’s liability for unpaid trust fund taxes from discharge, including an assessment under 26 U.S.C. § 6672.

Madia v. New Jersey, Division of Taxation (In Re Madia) · filed 1986-11-06(a)(1)(A)

It is clear from the statute that once the trust fund taxes are included the penalty must be included as well.

Section 523(a)(1)(A) makes pre-petition interest on a priority tax claim nondischargeable.

In Re Reich · filed 1986-10-28(a)(1)(A)

Therefore, that portion of the I.R.S.’ claim which represents pre-pe-tition interest has priority under 11 U.S.C. § 507(a)(7)(G), and is non-dischargeable pursuant to 11 U.S.C. § 523(a)(1)(A).

Section 523(a)(1)(B)(i) prevents discharge of a tax debt when a required return was not filed.

Frank Wesley Goans, Jr., and Mildred Goans v. United States · filed 1986-09-18(a)(1)(B)(i)

Applying the provisions of 11 U.S.C. Sec. 523(a)(1)(B)(i) to the proceedings herein, appellants' bankruptcy does not discharge appellants as debtors from any tax debt with respect to which a return, if required, was not filed. Appellant Mildred Goans did not file tax returns for 1976-1979; liability for those years is therefore not dischargeable.

Section 523(a)(1)(A) excepts from discharge a tax that remained assessable when the petition was filed, even if the tax year was more than three years earlier.

Longley v. United States (In Re Longley) · filed 1986-07-10(a)(1)(A)

Thus, it appears that as long as a tax is still “assessable” as of the petition date under the applicable statute of limitations or by agreement of the parties, it is entitled to priority and is, thus, nondischargeable, even though the taxes may relate to tax years prior to three years before the filing of the Title 11 petition. ... Any other reading would render Section 523(a)(1)(A), and its reference to Section 507(a)(7)(A)(iii), meaningless.

Section 523(a)(1)(A) excepts from discharge an employer’s obligation to reimburse a state for workers’ compensation benefits when the obligation qualifies as a priority excise tax.

Green v. Beaman (In Re Beaman) · filed 1980-12-09(a)(1)(A)

I find that the obligation of an employer to reimburse the Director of the Workers Compensation Department for payments made by the State Accident Insurance Fund Corporation under ORS 656.054(1) to workers of a noncomplying employer is an excise tax on a transaction within the meaning of 11 U.S.C. § 507(a)(6)(E) and is therefore nondischargeable under 11 U.S.C. § 523(a)(1)(A).

Section 523(a)(1)(A) ties the dischargeability of retail sales taxes to the three-year priority period for excise taxes under § 507(a)(6)(E).

Tapp v. Fairbanks North Star Borough (In Re Tapp) · filed 1981-12-31(a)(1)(A)

The Borough’s contention fails because the priority, and through § 523(a)(1)(A), dischargeability, of its retail sales tax claim is governed not by § 507(a)(6)(C), but rather by § 507(a)(6)(E), which reads as follows and deals with: ... Pursuant to the three year limitations period of this section, Mrs. Tapp’s liability for all sales taxes for which a return was due before December 5, 1977, is dischargeable.

Section 523(a)(7) makes a tax penalty nondischargeable when it relates to a nondischargeable tax, regardless of whether the underlying event occurred more than three years before the bankruptcy petition.

Carlton v. Internal Revenue Service (In Re Carlton) · filed 1982-01-28(a)(7)

But the Court finds that the statute is ambiguous and the legislative history dictates that subsections (A) and (B) of § 523(a)(7) be treated as two entirely distinct exceptions to the nondischargeability of tax penalties. The tax penalties in question were assessed in relation to a tax specified in § 523(a)(1) and are, therefore, non-dischargeable regardless of the fact that they relate to returns filed more than three years before the filing of the petition in bankruptcy.

Section 523(a)(1)(A) preserves the nondischargeable status of a tax debt when a surety pays it and is subrogated to the taxing authority’s claim.

Woerner v. Farmers Alliance Mutual Insurance (In Re Woerner) · filed 1982-01-28(a)(1)(A)

Therefore, Farmers Alliance is subrogated to a nondis-chargeable debt under § 523(a)(1)(A).

Section 523(a)(1) makes a responsible corporate officer’s liability for withheld taxes under 26 U.S.C. § 6672 nondischargeable.

Coleman v. Internal Revenue Service (In Re Coleman) · filed 1982-04-16(a)(1)

Therefore, as a matter of law, under 26 U.S.C. § 6672(a), §§ 507(a)(6)(C), 523(a)(1) of 11 U.S.C., and United States v. Sotelo, there is no legal theory under which the debtor can seek a ruling that the debt owed to the IRS is dischargeable.

Section 523(a)(1)(A) excepts abandoned mine reclamation fees from discharge as excise taxes covered by § 507(a)(6).

United States v. King (In Re King) · filed 1982-05-05(a)(1)(A)

Thus, the fee is an “excise” tax for the purposes of § 507(a)(6) and therefore is excepted from discharge by § 523(a)(1).

Section 523(a)(1)(A) excepts priority taxes from discharge even if the taxing authority did not file a proof of claim.

Massoni v. District Director of Internal Revenue Service (In Re Massoni) · filed 1982-05-24(a)(1)(A)

Under 11 U.S.C. § 523(a)(1)(A), all § 507(a)(6) priority taxes are excepted from discharge whether or not a claim tor such tax was filed or allowed. Thus, the failure of the IRS to file a proof of claim does not affect the debt’s dischargeability.

Section 523(a)(1)(C) requires more than nonpayment alone to establish a fraudulent return or willful attempt to evade tax.

Western Surety Co. v. Edmiston (In Re Edmiston) · filed 1982-08-11(a)(1)(C)

Similarly, the issue of a fraudulent return or willful attempt at evasion of the tax under 11 U.S.C. § 523(a)(1)(C) is unsupported by any facts in the pretrial order. The fact of nonpayment alone is insufficient.

Section 523(a)(1)(B) excepts a tax debt from discharge when the required return was filed late within two years before the bankruptcy petition.

In Re Monteith · filed 1982-09-30(a)(1)(B)

Where a tax return is filed, this section provides that only those unpaid taxes, for which a tax return was filed “after the date on which such return was last due, under applicable law or under any extension, and after two years before the date of the filing of the petition” are non-dischargeable in bankruptcy. 11 U.S.C. Section 523(a)(1)(B). Debtor filed his tax return for the year 1977 in a timely fashion and did not file it “after two years before the date of the filing of the petition”. The tax debt is, therefore, dischargeable and sub-category (1) to 11 U.S.C. Section 522(c) does not apply in this case.

Section 523(a)(1)(A) leaves a government tax claim with § 507(a)(6) priority undischarged, so the debtor remains liable for any unpaid balance.

In Re Higgins · filed 1983-04-11(a)(1)(A)

However, a government unsecured claim for taxes under § 507(a)(6) is not discharged. 11 U.S.C. § 523(a)(1)(A). The debtor remains liable after the bankruptcy proceeding for whatever amount of the tax claim that remains unsatisfied after distribution of estate assets.

Section 523(a)(1)(A) excepts from discharge taxes that a retailer must collect from purchasers and is liable to pay to the state, regardless of the taxes’ age.

In Re John Arthur Rosenow v. State of Illinois, Department of Revenue, in Re Robert M. Hull v. State of Illinois, Depart · filed 1983-08-10(a)(1)(A)

Section 507(a)(6)(C) (“Section C”), however, describes certain types of taxes which are to be given priority without any limitation upon the time when they became due; and taxes within that section are also included in the exceptions to discharge listed in 11 U.S.C. § 523(a)(1)(A).

Section 523(a)(1)(A) excepts from discharge taxes a debtor was required to collect or withhold, including liability assessed under 26 U.S.C. § 6672.

In Re Holl · filed 1983-10-25(a)(1)(A)

Pursuant to 11 U.S.C. § 523(a)(1)(A), the bankruptcy injunction under 11 U.S.C. § 524(a)(2) is not applicable to taxes required to be collected or withheld and for which the debtor is liable in some capacity: ... Taxes assessed under 26 U.S.C. § 6672 are not dischargeable in bankruptcy.

Section 523(a)(1) excepts sales tax liability from discharge even when the related tax lien is unenforceable against exempt homestead property.

Stephenson v. South Dakota, Department of Revenue, Sales Tax Division (In Re Stephenson) · filed 1983-11-21(a)(1)

Consequently, the debtors’ liability for sales tax is an unsecured debt surviving the discharge as a nondischargeable debt under 11 U.S.C. § 523(a)(1).

Section 523(a)(1)(A) does not except a tax debt from discharge when the return was due more than three years before the bankruptcy petition and the debt has no priority under § 507(a)(7).

In Re Conti · filed 1985-06-04(a)(1)(A)

Pursuant to 11 U.S.C. § 523(a)(1)(A), that discharge order would not affect any tax obligation of a kind and for the period specified in § 507(a)(7). The latter section gives priority to the unsecured claims of governmental units for taxes if a return was due, including extensions, three years or less before the date of the filing of the petition. In the case at bar, the debtor’s 1977 tax return was due April 15, 1978 which is more than three years before the date of the filing of the petition and, therefore, is neither a § 507(a)(7) priority claim nor is the debtor’s 1977 tax liability nondischargeable pursuant to § 523(a)(1).

Section 523(a)(1)(A) excepts tax debts from discharge whether or not a claim for the tax was filed or allowed.

United States v. Gurwitch (In Re Gurwitch) · filed 1985-06-07(a)(1)(A)

A tax debt is excepted from discharge “whether or not a claim for such tax was filed or allowed.” 11 U.S.C. § 523(a)(1)(A). ... On remand, the reorganization plan will remain intact, with the additional IRS claims of $18,876.28 separately enforced against the debtor.

Section 523(a)(1) leaves post-petition interest and penalties on priority taxes nondischargeable even when the trustee pays the priority claim in full.

Geving v. United States (In Re Geving) · filed 1985-09-04(a)(1)

Any part of such claim not paid by dividend from the trustee, together with interest and penalties accruing thereon after the petition is filed, is a debt not dischargeable by virtue of Sec. 523(a)(1). In this adversary proceeding the law is clear that, although the priority proof of claim was paid in full, the entire debt for taxes, including post-petition interest and penalties, is not discharged.

Section 523(a)(1) permits discharge of income tax debts, including interest and penalties, when the returns were due more than three years and filed more than two years before bankruptcy.

Gerulis v. United States Internal Revenue Service (In Re Gerulis) · filed 1985-09-18(a)(1)(A) and (B)

Based on the facts now provided, I find that the 1975 and 1979 tax debts for taxes, interest and penalties are also discharged pursuant to 11 U.S.C. § 523(a)(1)(A) and (B). For 1975 and 1979 the tax returns were due April 15, 1976 and April 15, 1980 respectively. The returns were filed July 12, 1976 and July 19, 1982 respectively. Both were therefore tax returns which were due before three years before September 19, 1984, the date of the Debtors’ bankruptcy filing and both returns were actually filed more than two years before September 19, 1984.

Section 523(a)(1)(C) makes the entire tax debt arising from a fraudulent return nondischargeable, even if only part of the underpayment resulted from fraud.

In Re Harris · filed 1986-02-06(a)(1)(C)

The implication of the pertinent language of § 523(a)(1)(C) is clear: if a debtor has made a fraudulent tax return, any debt for a tax arising out of that return is nondischargeable.

Section 523(a)(1) does not make a debtor’s reimbursement debt to a partner nondischargeable when the partner paid taxes for which he was also obligated.

Ridge v. Smothers (In Re Smothers) · filed 1986-05-13(a)(1)

In determining the dischargeability of a debt under Section 523, the Court must be mindful of the competing policies at hand. The policy to promote the collection of taxes will not be furthered by a broad interpretation of this provision. The policy favoring dischargeability, however, will be promoted if we decline to apply the doctrine of equitable subrogation and hold that the debt owed to the plaintiff is discharged.

Section 523(a)(1)(A) prevents discharge of a tax debt when a notice stating the amount owed and its payment date constitutes an assessment within the applicable 240-day period.

Schumacher v. Wisconsin Department of Revenue (In Re Schumacher) · filed 1986-04-25(a)(1)(A)

Similarly, it is the conclusion of this court that the initial mailing of a tax notice stating the amount of tax owing and the date on which it is payable is an assessment pursuant to 11 U.S.C. § 507(a)(7)(A)(ii) and § 523(a)(1)(A).

Section 523(a)(1)(B)(i) excepts taxes from discharge when a debtor fails to file a required amended state income tax return, even if the state has assessed the taxes.

Haywood v. Illinois (In Re Haywood) · filed 1986-06-20(a)(1)(B)(i)

It is equally clear that if the debtor did not file the amended tax returns as required by Ill. Rev. Stat., ch. 120, 115-506(b), the taxes due are non-discharge-able under 11 U.S.C. § 523(a)(1)(B)(i). Under that statute, the fact that the taxes were already assessed by the State is irrelevant.

Section 523(a)(1)(A) makes covered tax debts nondischargeable whether or not a claim for the tax was filed or allowed.

In Re Harry Gurwitch, Debtor. United States of America v. Gurwitch · filed 1986-07-21(a)(1)(A)

Moreover, the Code states that these taxes are nondischargeable “whether or not a claim for such tax was filed or allowed.” Section 523(a)(1)(A).

Section 523(a)(1) prevents discharge of a tax debt resulting from failure to file a return or a willful attempt to evade tax payment.

United States v. Hoffman · filed 1986-08-28(a)(1)

Although back taxes more than three years overdue at the time of discharge in bankruptcy are generally deemed dischargeable, the bankruptcy code does not discharge a tax debt resulting from the failure to file a return or from a willful attempt to defeat or evade tax payment. 11 U.S.C. § 523(a)(1). This statutory provision renders Mr. Hoffman’s 1974 and 1975 tax debt nondischargeable.

Section 523(a)(7)(A) makes a fraud penalty nondischargeable when the underlying tax is nondischargeable.

Thomas v. Cassidy v. Commissioner of Internal Revenue · filed 1987-03-18(a)(7)(A)

Moreover, subsection 523(a)(7)(A) mandates that fraud penalties are nondischargeable if the underlying tax with respect to which the penalty was imposed is also nondischargeable.

Section 523(a)(1)(A) excepts an erroneous income tax refund debt from discharge when the claim receives sixth priority under the applicable version of section 507.

Bleak v. United States · filed 1987-05-21(a)(1)(A)

This language evinces Congress’ intent to except from discharge all claims that receive sixth priority; including debts arising from erroneous refunds.

Section 523(a)'s tax discharge exceptions do not prevent discharge of income tax liabilities in a corporate Chapter 11 reorganization.

In Re Flanigan's Enterprises, Inc. · filed 1987-06-10(a)

The IRS fails to differentiate between a Chapter 11 corporate reorganization, a Chapter 7 liquidation, or a Chapter 11 individual proceeding. In Chapter 7 cases and individual Chapter 11 cases federal taxes are not discharged. 11 U.S.C. § 523 and § 1141(d)(2). Therefore, 26 U.S.C. § 503(b) dealing with extensions of time to collect non-dischargeable federal tax liability is inapplicable and 11 U.S.C. § 108 does not avail the IRS any comfort.

Section 523(a)(1)(A) excepts seventh-priority tax claims from discharge despite its outdated cross-reference to § 507(a)(6).

Edwards v. Internal Revenue Service (In Re Edwards) · filed 1987-06-17(a)(1)(A)

If § 523(a)(1)(A) is so construed to give proper effect to its intended purpose, priority tax claims now accorded seventh priority are nondischargeable debts.

Section 523(a)(1) permits a person who pays a tax debt for which she was jointly liable to seek an exception from discharge through subrogation to the taxing authority’s claim.

Garton v. Zoglman (In Re Zoglman) · filed 1987-06-26(a)(1)

It is the conclusion of the court that the debt owed by the debtor to the plaintiff should be excepted from the debtor’s bankruptcy discharge. The plaintiff was jointly obligated on the obligation to the IRS and not a volunteer. The debtor’s obligation to the IRS would have been excepted from discharge had it not been paid.

An innocent partner who pays a partnership creditor’s nondischargeable claim may be subrogated to the claim and its nondischargeable character when the co-partner’s wrongdoing occurred without the paying partner’s knowledge or authorization.

Baxter v. Flick (In Re Flick) · filed 1987-06-30(a)(4)

Second, the policy behind the non-discharge of debts under 11 U.S.C. § 523(a)(4) will be undermined by refusing plaintiffs request for subrogation. ... This court holds that an honest partner who pays a partnership obligation arising from a co-partner’s wrongful acts done without the partner’s knowledge or authorization is entitled to be subrogated to the claims paid by the honest partner, including non-dischargeable claims of creditors of the partnership.

Section 523(a)(1)(B)(i) makes a tax debt nondischargeable when the debtor did not file a required return, even if the IRS filed one on the debtor’s behalf.

Hofmann v. United States (In Re Hofmann) · filed 1987-07-09(a)(1)(B)(i)

The government’s position that § 523(a)(l)(B)(i) renders nondischargeable a tax for which the debtor did not file a tax return is supported by the legislative history. ... Accordingly, I find that the taxes due for 1968 are nondischargeable.

Section 523(a)(1)(A) excepts income tax debt from discharge when the return’s last due date, including extensions, falls within three years before the bankruptcy petition.

Wood v. United States (In Re Wood) · filed 1987-09-16(a)(1)(A)

Under §§ 523(a)(1)(A) and 507(a)(7)(A)(i) the federal income tax liabilities of an individual debtor are nondischargeable if the last due date of the return, including extensions, falls within the three year period preceding the date on which the debtor filed the bankruptcy petition. For purposes of §§ 523(a)(1)(A) and 507(a)(7)(A)(i), the due date of the return is dispositive and the date the return is actually filed is immaterial.

Section 523(a)(1)(A) excepts pre-petition interest on priority taxes from discharge because the interest is part of the tax debt.

Brinegar v. United States (In Re Brinegar) · filed 1987-07-23(a)(1)(A)

The Court finds that the interest should be found non-dischargeable under Section 523(a)(1)(A), which excepts from discharge any “debt” for a tax of the kind specified in Section 507(a)(7).

Section 523(a)(1)(A) excepts qualifying excise taxes from an individual debtor’s discharge.

Downs v. Maudlin (In Re Downs) · filed 1987-08-05(a)(1)(A)

This court holds that the Oregon Motor Carrier Tax is an “excise tax,” nondis-chargeable under 11 U.S.C. § 523(a)(1)(A).

Section 523(a)(1)(A) excepts a timely excise tax debt covered by section 507(a)(7)(E) from discharge.

DEP'T OF REV. EX REL. PEOPLE OF ILL. v. Steinkopf · filed 1987-09-08(a)(1)(A)

Hence, if the occupation tax is of the type enumerated in either section 507(a)(2) or 507(a)(7), the order of discharge did not extinguish Steinkopf’s liability for the tax. ... In light of this explicit authority, we hold that the occupation tax is not dischargeable under subsection E, provided that the tax debt at issue is not “stale,” since stale subsection E type taxes are dischargeable. ... Obviously, then, the taxes in this case were not stale, and are therefore not dischargeable in bankruptcy.

Section 523(a)(1) excepts an income tax debt from discharge when the return was last due within three years before the bankruptcy petition.

Borck v. United States, Internal Revenue Service (In Re Borck) · filed 1987-12-21(a)(1)

3. The tax claim for calendar year 1984 is for a taxable year for which a return was required and was last due, including extensions, after three (3) years before the date of the filing of the Petition. ... 8. Pursuant to the aforesaid Sections 523(a)(1) and 727(a) the tax liability for the tax year ended December 31, 1984, in the principal sum of $761.02, together with statutory additions, for an aggregate of approximately $1,015.58 as of the date of May 12, 1987, is hereby determined to be non-dischargeable.

Section 523(a)(1)(A) makes tax debts nondischargeable when they qualify for priority as taxes still assessable after the bankruptcy case begins.

Crist v. United States (In Re Crist) · filed 1988-01-29(a)(1)(A)

Clearly then, the tax claims of IRS were (subject to Debtors’ remaining argument) assessable after “the commencement of the case,” 11 U.S.C. section 507(a)(7)(A)(iii), and, therefore, were nondis-chargeable. 11 U.S.C. section 523(a)(1)(A).

Section 523(a)(1) leaves a debtor personally liable for post-petition interest on nondischargeable taxes until the trustee pays the taxes, even if the trustee pays them in full.

In Re Stine · filed 1988-01-11(a)(1)

Pursuant to § 523(a)(1) (11 U.S.C. § 523(a)(1)) of the Bankruptcy Code, this claim was non-dischargeable in bankruptcy. ... We do not read Bruning as limiting the accrual of interest to only that portion of the tax which remains unpaid.

Section 523(a)(7)(A) and (B) apply only to tax penalties; the three-year provision does not make older criminal penalties dischargeable.

Kohr v. Magisterial District 52-1-01 (In Re Kohr) · filed 1988-02-22(a)(7)

I think paragraph A & B of section 523(a)(7) applies only in regard to a tax penalty.

Section 523(a)(1)(B)(i) excepts taxes from discharge when a required amended state tax return was not filed.

Cohn v. Illinois, Department of Revenue (In Re Cohn) · filed 1988-02-23(a)(1)(B)(i)

The court finds that the debtors were required to file amended returns for each of the taxable years of 1972 through 1981, they did not file these returns and any taxes due under the properly amended returns are not dischargeable under the provisions of 11 U.S.C. Section 523(a)(l)(B)(i).

Section 523(a)(1)(A) allows a person subrogated to a qualifying tax claim to assert its nondischargeability even when the claim lacks priority.

Cooper v. Cooper (In Re Cooper) · filed 1988-03-07(a)(1)(A)

Although the case law is split, the Court believes that section 523(a)(1) of the Code clearly indicates that once it is determined that Darlene is entitled to subrogate to the IRS’ claim under section 509, she also becomes entitled to assert the IRS’ right to have its debt determined nondis-chargeable.

Section 523(a)(1)(A) does not except a tax debt from discharge when the tax claim was or would have been disallowed on the merits.

Spruill v. South Atlantic Production Credit Ass'n (In Re Spruill) · filed 1988-03-10(a)(1)(A)

This legislative history suggests that the language of the final version of § 523(a)(1)(A) relied on by PCA was intended to prevent the discharge of tax claims which were never filed or filed late but which would otherwise have been allowable, not tax claims which would have been disallowed even if they had been timely filed. ... In the absence of any .case authority to support PCA’s interpretation of § 523(a)(1)(A), this court will adopt the interpretation suggested by the legislative history to that section and hold that PCA's subrogated tax claim was discharged by the debtors’ bankruptcy.

Section 523(a)(1)(A) allows discharge of gross receipts tax debts that became due more than three years before the bankruptcy petition.

In Re Richard Eugene Groetken, Debtor. Richard Eugene Groetken v. State of Illinois, Department of Revenue · filed 1988-04-01(a)(1)(A)

Thus, excise taxes and taxes on or measured by gross receipts are dischargeable if they became due more than three years before the filing of the bankruptcy petition.

Section 523(a)(1)(C) excepts tax debts from discharge when the debtor attempts to evade or defeat the tax in any manner, including by falsely understating income on tax collection forms.

United States v. Childers · filed 1988-05-06(a)(1)(C)

Childers' further argument that his tax liabilities do not fall within the scope of the section 523(a)(1)(C) exception because that section only applies to taxpayers who have made false or fraudulent returns is squarely contradicted by the terms of the statutory provision itself, which brings within its scope taxes which the bankrupt attempted to evade or defeat "in any manner." The district court had before it unambiguous admissions of appellant that he had made false statements in tax collection information forms which substantially underreported his income available to pay his tax liabilities.

Section 523(a)(1)’s tax exceptions apply independently: a tax debt outside the late-return exception remains nondischargeable if the priority-tax exception applies.

Etheridge v. Illinois Department of Revenue (In Re Etheridge) · filed 1988-10-25(a)(1)

The subparagraphs of Section 523(a)(1) are in the alternative. ... Moreover, merely because a particular liability is not encompassed by a particular exception to discharge does not provide it a safe harbor from another exception which squarely applies.

A tax judgment that includes fraud penalties does not establish nondischargeability under § 523(a)(1)(C) when the fraud issue was not actually litigated and decided.

Graham v. Internal Revenue Service (In Re Graham) · filed 1988-12-23(a)(1)(C)

In sum, the question of whether the debtors filed a fraudulent tax return or willfully attempted to evade or defeat such tax for years 1969 through 1972 has not been decided for purposes of issue preclusion. IRS’ motion for summary judgment on this basis is therefore denied.

Section 523(a)(1)(C) excepts a tax debt from discharge when the IRS proves by clear and convincing evidence that the debtor knowingly filed a fraudulent return.

Kirk v. United States, Department of Internal Revenue (In Re Kirk) · filed 1989-01-25(a)(1)(C)

Based on the foregoing, this Court finds the tax debt for the 1977 tax year to be a dischargeable debt. It further finds the tax debt for the 1978 tax year to be a nondischargeable debt.

Section 523(a)(1)(A) treats a responsible corporate officer’s personal liability for unpaid corporate sales tax as a tax for dischargeability purposes.

George v. California State Board of Equalization (In Re George) · filed 1989-02-22(a)(1)(A)

For the above reasons, we determine that the personal liability imposed on the debtors' as responsible officers under § 6829 is a tax for purposes of determining dischargeability under § 523(a)(1). Accordingly, we affirm.

Section 523(a)(1)(A) excepts certain unsecured income tax debts from discharge when the return was last due, including extensions, within three years before the bankruptcy petition.

In Re Wood · filed 1989-03-02(a)(1)(A)

Section 523 excepts certain unsecured tax claims of "governmental units" that are granted a priority in distribution by section 507(a)(7)(A) and for which a return is last due, including extensions, within three years before the date on which the petition in bankruptcy is filed.

Section 523(a)(7)(B) allows discharge of tax penalties tied to a transaction or event more than three years before the bankruptcy petition.

Leslie v. Commissioner (In Re Leslie) · filed 1989-03-14(a)(7)(B)

However, pursuant to 11 U.S.C. § 523(a)(7)(B), those penalties are discharged.

Section 523(a)(1)(A) excludes qualifying excise taxes from discharge, including Oregon motor carrier taxes for transactions within the applicable three-year period.

Dawson v. Oregon (In Re Dawson) · filed 1989-03-31(a)(1)(A)

This court agrees with Judge Skidmore’s conclusion that the motor carrier taxes imposed under O.R.S. 767.815 et seq. are a non-dischargeable excise tax as defined in 11 U.S.C. § 507(a)(7) and 11 U.S.C. § 523(a)(1)(A).

Section 523(a)(1)(A) excepts priority tax debts from discharge even when the taxing authority has secured them with a lien.

Frengel v. Internal Revenue Service (In Re Frengel) · filed 1989-06-12(a)(1)(A)

While Sec. 507(a)(7) refers to “unsecured” claims, Congress did not intend to make unsecured claims for taxes nondis-chargeable and render taxes dischargeable where the government has imposed a lien on the taxpayers’ property.

Section 523(a)(1)(A) makes a tax debt nondischargeable when it qualifies for priority under § 507(a)(7), even if § 523(a)(1)(B) does not apply.

Smith v. United States (In Re Smith) · filed 1989-06-24(a)(1)(A)

In this case, the tax liability falls under the exception to dischargeability under Subsection (A) of § 523(a)(1) since the bankruptcy petition was filed within three years of the date when the tax return for 1983 should have been filed. Accordingly, since § 507(a)(7)(A)(i) establishes a priority for this tax liability, the claim is nondischargeable pursuant to § 523(a)(1)(A).

Section 523(a)(1)(A) excepts a tax debt from discharge when it qualifies for priority under § 507(a)(7), even if the debtor filed the return late more than two years before bankruptcy.

Etheridge v. State of Ill. · filed 1989-07-12(a)(1)(A)

The State and the bankruptcy court offer persuasive reasons for their conclusion that the tax liability due between two and three years before the bankruptcy filing should be non-dischargeable. Therefore, this Court AFFIRMS the bankruptcy court’s decision.

Section 523(a)(1)(C) excepts a tax debt from discharge when the debtor made a fraudulent return or willfully attempted to evade or defeat the tax.

Carapella v. United States (In Re Carapella) · filed 1989-06-06(a)(1)(C)

This Section provides two alternative grounds upon which a debtor’s tax liability may be declared nondischargeable. The first is where the debt is for a tax with respect to which the debtor made a fraudulent return. The second is where the debt is for a tax with respect to which the debtor willfully attempted in any manner to evade or defeat such tax. ... For these reasons, this Court is satisfied that the Debtor’s tax liabilities for the years 1978 and 1979 are nondischargeable debts pursuant to § 523(a)(1)(C) of the Bankruptcy Code.

Section 523(a)(1)(B)(i) makes a tax debt nondischargeable when the debtor fails to file a required return, even if the IRS files a substitute return.

Pruitt v. United States Government Ex Rel. Internal Revenue Service (In Re Pruitt) · filed 1989-08-03(a)(1)(B)(i)

The filing of such a substitute return is a simple administrative step which allows the assessment and collection process to begin. ... The plain language of the section, as well as the purpose behind its enactment, require that the debtors have filed the required return. ... It is clear that pursuant to § 523(a)(1)(B), the debt arising from the years in which he failed to file returns is non-dischargeable as to Mr. Pruitt.

Section 523(a)(7)(B) does not discharge a responsible officer’s liability under 26 U.S.C. § 6672 for unpaid withholding taxes because that liability is a tax under § 523(a)(1)(A), not a penalty.

Matlock v. United States (In Re Matlock) · filed 1989-08-18(a)(7)(B)

It follows that the “100% penalty” is also a nondischargeable “tax” within 11 U.S.C. § 523(a)(1)(A); and is not a “penalty” within 11 U.S.C. § 523(a)(7)(B).

Section 523(a)(1)(A) excepts sales taxes required to be collected from discharge even if the debtor did not collect them.

Rikard v. Alabama (In Re Rikard) · filed 1989-09-15(a)(1)(A)

The difference in the “has collected” wording of § 17(a)(1)(e) and the “required to be collected” language of § 507(a)(7)(C) is dispositive in this case. Decisions interpreting the present Bankruptcy Code provisions clearly indicate sales taxes (also known as trust fund taxes) are not dis-chargeable in bankruptcy In re Shank, 792 F.2d 829 (9th Cir.1986).

Section 523(a)(1) excepts covered taxes and related penalties from discharge whether or not a claim was filed or allowed.

In Re Stahly · filed 1989-12-19(a)(1)

Importantly, § 523(a)(1) excepts taxes and penalties relating thereto from discharge whether or not a claim is filed or allowed.

Section 523(a)(1)(A) excepts a priority tax debt from discharge even when the late-return exception in subsection (a)(1)(B)(ii) does not apply.

Smith v. United States · filed 1989-12-29(a)(1)(A)

Although the Smiths tax liability is not excepted from discharge under Section 523(a)(l)(B)(ii) it is excepted from discharge under Section 507(a)(7)(A) as incorporated into Section 523(a)(1)(A).

Section 523(a)(1) makes income taxes nondischargeable when they qualify for priority under § 507(a)(7), including when the assessment period is tolled by an earlier bankruptcy case.

United States v. Deitz (In Re Deitz) · filed 1990-05-10(a)(1)

Under 11 U.S.C. § 523(a)(1), a debtor’s income tax obligations are not dischargea-ble if those obligations come under 11 U.S.C. § 507(a)(7). ... The 240-day period established by Section 507 was tolled and extended by 11 U.S.C. § 108 and 26 U.S.C. § 6503. Thus, the taxes are not dischargeable.

Section 523(a)(1)(B)(i) excepts a tax debt from discharge when the debtor was required to file a return and did not file it.

Brookman v. United States, Internal Revenue Service (In Re Brookman) · filed 1990-05-14(a)(1)(B)(i)

Accordingly, the plaintiffs’ 1984 income tax debts are excepted from discharge pursuant to 11 U.S.C. § 523(a)(1)(B).

Section 523(a)(1)(B) makes a tax debt nondischargeable when the debtor does not file the required return, even if the IRS files one for him.

Crawford v. United States (In Re Crawford) · filed 1990-05-15(a)(1)(B)

The Court is persuaded by the reasoning contained in the cases above, that, where a debtor does not file his own return, the tax obligation is nondischargeable pursuant to § 523(a)(1)(B).

Section 523(a)(1)(B)(i) excepts a tax debt from discharge when a required tax return was not filed.

Blackwell v. Virginia, Department of Taxation (In Re Blackwell) · filed 1990-05-24(a)(1)(B)(i)

There is no question that pursuant to § 523(a)(l)(B)(i), a tax will not be discharged if a tax return is required to be filed and it is not filed.

Section 523(a)(7)(B) allows discharge of a tax penalty imposed for an event more than three years before the bankruptcy petition, even if the underlying tax is nondischargeable.

In Re Roberts · filed 1990-06-27(a)(7)(B)

We therefore hold that a tax penalty "imposed with respect to a transaction or event that occurred before three years before" the bankruptcy petition is dischargeable in bankruptcy.

Section 523(a)(1)(C) makes a tax debt nondischargeable when a debtor willfully conceals assets to prevent collection of the tax.

Jones v. United States (In Re Jones) · filed 1990-06-28(a)(1)(C)

The court concludes the government’s claim for taxes up to 1980 is nondis-chargeable because of debtors’ efforts to evade the taxes by placing title to their home and the Missouri lake property in the names of others.

Section 523(a)(1) excepts trust fund taxes from discharge regardless of their age, along with attributable interest and penalties.

King v. Tennessee Department of Revenue (In Re King) · filed 1990-08-10(a)(1)

As such, the tax obligation at issue is non-dischargeable pursuant to 11 U.S.C. § 523(a)(1) and § 507(a)(7)(C). It follows that penalties and interest are likewise not dischargeable if attributable to the nondis-ehargeable tax obligation.

Section 523(a)(7)(B) discharges a tax penalty when the event giving rise to it occurred more than three years before the bankruptcy petition, even if the underlying tax is nondischargeable; the relevant event is when the return and payment were due, rather than when the penalty was assessed.

Frary v. United States (In Re Frary) · filed 1990-08-13(a)(7)(B)

Adopting the reasoning of the Tenth and Eleventh Circuits, the penalties assessed by the IRS on Frary’s third assessment for 1983 and on his 1984 tax return are dischargeable, under 11 U.S.C. § 523(a)(7)(B), as the penalties are on taxes that were due more than three years before the date that Frary filed his petition.

Section 523(a)(1)(A) excepts an income tax debt from discharge when the tax was assessed within the applicable 240-day period under Section 507(a)(7)(A)(ii).

In Re Davidson · filed 1990-08-24(a)(1)(A)

Under §§ 523(a)(1) and 507(a)(7)(A)(ii) of the Code, an income tax obligation of the debtor is not dischargeable if the IRS assessed the tax obligation within 240 days of the date that Debtor filed its petition.

Section 523(a)(7) makes tax penalties and interest nondischargeable when the underlying tax is nondischargeable.

Oldfield v. United States, Internal Revenue Service (In Re Oldfield) · filed 1990-10-22(a)(7)

However, the great majority of courts considering this question have concluded that the tax penalties and interest are also non-dischargeable if the tax itself is non-dis-chargeable. ... this Court adopts the majority approach in interpreting section 523(a)(7) as the better reasoned analysis because it more correctly reflects Congressional intent.

Section 523(a)(1)(C) excepts a tax debt from discharge when the debtor specifically intended to evade a tax believed to be owing.

Gilder v. United States (In Re Gilder) · filed 1990-09-24(a)(1)(C)

Thus, proof of a debtor’s conduct with the specific intent to evade a tax believed to be owing which would be sufficient to sustain a finding of civil tax fraud under 26 U.S.C. § 6653(b) is sufficient as proof of a willful attempt to evade a tax for purpose of § 523(a)(1)(C).

Under § 523(a)(7)(B), the event giving rise to a late-filing tax penalty is the first day the return is overdue.

Stoll v. Internal Revenue Service (In Re Stoll) · filed 1990-10-19(a)(7)(B)

Therefore, in the instant case, the “transactions or events” giving rise to Debtor’s 1981-1985 tax penalties were the absence of tax returns on April 16, 1982, 1983, 1984, 1985, and 1986, respectively.

Section 523(a)(1)(B)(i) makes a tax debt nondischargeable when the debtor fails to file a required return, regardless of the tax’s age or type.

Rosenfeld v. Department of Revenue · filed 1990-10-23(a)(1)(B)(i)

We hold that Ellis’ liability to the State for any unpaid taxes owed under the Act with respect to which he didz-not file the required return was not affected by the order of discharge in his bankruptcy proceeding.

Section 523(a)(1)(A) makes taxes assessed within 240 days before the bankruptcy petition nondischargeable.

United States v. Howell (In Re Howell) · filed 1990-11-06(a)(1)(A)

Since the taxes were assessed within 240 days of the filing date, the taxes are non-dischargeable under § 523(a)(1)(A).

Section 523(a)(1)(A) excepts priority tax liabilities from discharge when the tax returns were due within three years before the bankruptcy petition.

In Re Wise · filed 1991-01-02(a)(1)(A)

The tax liabilities were not discharged by the debtor’s chapter 7 discharge order since the returns had not been due more than three years. See 11 U.S.C. §§ 523(a)(1)(A), 507(a)(7)(A)(i).

Section 523(a)(7)(A) treats liability assessed under IRC § 6672 as a tax rather than a dischargeable tax penalty.

Garrett v. Internal Revenue Service (In Re Garrett) · filed 1991-01-08(a)(7)(A)

However, this court agrees with the position of the United States that the liability assessed under IRC § 6672 is a tax and not a tax penalty for the purpose of determining dischargeability under § 523(a)(7).

Section 523(a)(1)(A) excepts a partner’s priority FICA and FUTA tax liabilities arising from a partnership from discharge.

Ross v. United States (In Re Ross) · filed 1990-12-18(a)(1)(A)

Because plaintiff is liable for the tax liabilities of the partnership, the claims against plaintiff by the United States for the partnership’s share of the FICA and FUTA tax liabilities are entitled to priority status and are excepted from discharge.

Section 523(a)(1)(A) excepts priority income tax debts from discharge.

In Re Bryant · filed 1990-12-19(a)(1)(A)

In addition, under section 523(a)(1)(A), a priority claim under section 507(a)(7) is an exception to any discharge granted a debtor.

Section 523(a)(1)(A) excepts from discharge income tax debts that remain assessable after the bankruptcy case begins under § 507(a)(7)(A)(iii).

Wines v. United States (In Re Wines) · filed 1991-01-14(a)(1)(A)

Based on the foregoing, the Court finds that the 1984 and 1985 tax deficiencies are nondischargeable, priority claims pursuant to 11 U.S.C. § 523(a)(1)(A) and 11 U.S.C. § 507(a)(7)(A)(iii).

Section 523(a)(1)(A) excepts prepetition tax debts from an individual debtor’s discharge even if the taxing authority did not file a proof of claim.

Kinney v. Internal Revenue Service (In Re Video Gaming, Inc.) · filed 1991-02-20(a)(1)(A)

Section 523 goes further and states that a discharge under section 1141 does not discharge an individual debtor from any debt for a tax of the kind specified in section 507(a)(7) whether or not a claim for such tax was filed or allowed. ... This court concludes that the failure of the IRS to file a proof of claim for the pre-petition 100% penalty taxes does not render its claim dischargeable.

Section 523(a)(1)(B)(i) makes taxes nondischargeable when a debtor fails to file a required return, even if the IRS files a substitute return.

Rench v. United States, Internal Revenue Service (In Re Rench) · filed 1991-03-21(a)(1)(B)(i)

Accordingly, the filing of a substitute return does not permit the discharge of the taxes for the tax years 1979 through 1983 under 11 U.S.C. § 523(a)(l)(B)(i), and although the Debtors’ liabilities for the tax years 1984 through 1986 are dischargeable, the federal tax liens for those years remain enforceable against the exempt assets of the Debtors’ estate pursuant to 11 U.S.C. § 522(c)(2)(B), (f).

Section 523(a)(1)(A) excepts Texas sales tax debts from discharge when they qualify as priority trust fund taxes under section 507(a)(7)(C).

Malcuit v. State of Tex. · filed 1991-05-16(a)(1)(A)

As the Texas sales tax is entitled to priority status, it is exempted from discharge pursuant to 11 U.S.C. § 523(a)(1)(A).

Section 523(a)(1)(C) excepts tax debt from discharge when a debtor signs returns she knows are false.

Hopkins v. United States (In Re Hopkins) · filed 1991-04-10(a)(1)(C)

Because this court finds that the debts owed IRS represent a tax to which plaintiff made a fraudulent return or willfully attempted to evade such tax, by signing returns which she knew were in error, the amounts owed for the tax years 1976 and 1977 should not be discharged.

Section 523(a)(1)(A) excepts trust fund taxes collected from purchasers from discharge.

Peiffer v. Alabama Department of Revenue (In Re Peiffer) · filed 1991-04-22(a)(1)(A)

Such taxes are “trust fund” taxes under 11 U.S.C. §§ 507(a)(7)(C) and 523(a)(1)(A) and nondischargeable in bankruptcy.

Section 523(a)(1)(B)(i) makes a tax debt nondischargeable when the debtor fails to file a required return; an IRS substitute return and a signed Tax Court stipulation did not count as filed returns here.

Gushue v. Internal Revenue Service (In Re Gushue) · filed 1991-04-25(a)(1)(B)(i)

Accordingly, we find that debtor can not be deemed to have filed the returns under 26 U.S.C. § 6020(a) or Revenue Ruling 74-203 and that debtor’s obligation for the tax years 1975, 1976, 1977 and 1978 is nondischargeable under 11 U.S.C. § 523(a)(l)(B)(i) and we grant the United States’ motion for summary judgment.

Section 523(a)(7)(B) allows discharge of a tax penalty arising from a transaction or event more than three years before the bankruptcy filing, even if the underlying tax is not dischargeable.

Roberts v. United States Ex Rel. Internal Revenue Service (In Re Roberts) · filed 1991-06-14(a)(7)(B)

This Court agrees with the analysis of Roberts and Bums and holds that, where the requirements of § 523(a)(7)(B) are met, the tax penalty is dischargeable without regard to the provisions of § 523(a)(7)(A).

Section 523(a)(1)(A) excepts trust fund tax liability from discharge whether or not a claim for the tax was filed or allowed.

Kilen v. United States (In Re Kilen) · filed 1991-06-28(a)(1)(A)

Under the specific language of 11 U.S.C. § 523(a)(1)(A) Kilen’s liability for trust fund taxes is excepted from discharge “whether or not a claim for such tax was filed or allowed.” If valid tax claims for employment tax liability are assessed against Kilen at some future date, the claims would survive bankruptcy although the IRS never filed a proof of claim in Kilen’s bankruptcy.

Section 523(a)(1)(C) requires proof of a willful attempt to evade a tax; seeking bankruptcy relief once the tax becomes eligible for discharge does not establish that attempt by itself.

Peterson v. Commissioner (In Re Peterson) · filed 1991-07-02(a)(1)(C)

Section 523 of the Bankruptcy Code provides that a discharge does not discharge a debt for a tax “with respect to which the debtor made a fraudulent return or willfully attempted in any manner to evade or defeat such tax.” 11 U.S.C. § 523(a)(1)(C). ... Seeking bankruptcy relief as soon as debts for taxes are arguably dischargeable is not per se evidence of a “willful attempt to evade” the taxes.

Section 523(a)(1)(A) excepts withheld taxes from discharge when the debtor is liable for them in any capacity.

Bernard v. Internal Revenue Service (In Re Bernard) · filed 1991-07-15(a)(1)(A)

Taxes required to be collected and withheld and for which a debtor is liable in whatever capacity are also non-dischargeable.

Section 523(a)(7)(B) permits discharge of a tax penalty when the transaction or event giving rise to it occurred more than three years before the bankruptcy petition.

Hopkins v. United States (Internal Revenue Service) (In Re Hopkins) · filed 1991-07-24(a)(7)(B)

There being no dispute that the tax penalties assessed pursuant to § 6661 against Plaintiff involve a transaction that occurred more than three years before the bankruptcy filing, the Court hereby finds the tax penalties dischargeable under § 523(a)(7)(B).

Section 523(a)(1)(B) treats a late tax return as filed when the IRS receives it; an IRS-created dummy return does not count as the debtor’s filing.

United States v. D'Avanza · filed 1991-08-13(a)(1)(B)

The Debtor’s contention that the “dummy” return filed by the I.R.S., in the absence of a return filed by the Debtor, should act as a filing for the purposes of Section 523 is without merit.

Section 523(a)(1)(A) makes trust fund tax liabilities nondischargeable even when assessed as a 100 percent penalty.

Fernandez v. United States (In Re Fernandez) · filed 1991-08-14(a)(1)(A)

Since the 100 percent penalty is considered a tax rather than a penalty, the court finds that the Debtors liability to the government for trust fund taxes is nondischargeable pursuant to 11 U.S.C. § 523(a)(1)(A).

Section 523(a)(1)(C) excepts a tax debt from discharge when the debtor transfers assets to evade collection of the tax.

United States v. Sumpter (In Re Sumpter) · filed 1991-09-03(a)(1)(C)

The impression remains, therefore, that the Sumpters intentionally transferred their valuable real estate into a trust which they controlled at a time when they were insolvent for the purpose of evading the IRS’ attempts to collect a tax. Accordingly, I conclude that the government has proven a cause of action against Mrs. Sumpter under § 523(a)(1)(C) and therefore ... that the liabilities owed to the IRS should be excepted from the discharge issued in this case under § 727(a).

Section 523(a)(7) permits discharge of a tax penalty arising more than three years before the bankruptcy petition even when the underlying tax is nondischargeable.

Henderson v. United States (In Re Henderson) · filed 1991-10-02(a)(7)

The court finds the provisions of subsections (A) and (B) of 11 U.S.C. § 523(a)(7) to be mutually exclusive; the statute should be read literally in the disjunctive.

Section 523(a)(1)(A) makes a tax debt nondischargeable when the tax is assessed within the applicable priority period before bankruptcy.

In Re Clark · filed 1991-12-17(a)(1)(A)

Conversely, the IRS has meet its burden of proof that the debtor filed a 1984 tax return in April of 1990. Therefore, the taxes are non-dischargeable pursuant to 11 U.S.C. § 523(a)(1)(A).

Section 523(a)(1)(B) leaves tax debts nondischargeable when an IRS substitute return lacks the taxpayer’s signature and the taxpayer filed no return.

In Re Douglas W. Bergstrom, Debtor. Douglas W. Bergstrom v. United States · filed 1991-11-13(a)(1)(B)

We hold that substitute returns do not constitute filed returns in the absence of the signature of the taxpayer, as required by 26 U.S.C. § 6020(a).

Section 523(a)(1)(B)(i) excepts a tax debt from discharge when the debtor failed to file a return; amended returns filed after the IRS assessed the taxes did not count as returns here.

Arenson v. United States Ex Rel. Internal Revenue Service (In Re Arenson) · filed 1991-12-06(a)(1)(B)(i)

I conclude that the amended returns filed by the debtor should not be considered a “return” for the purpose of § 523(a)(l)(B)(i). The amended returns were filed by the debtor after the Internal Revenue Service made a determination of the debtor’s tax liabilities and made an assessment of taxes for the years at issue.

Section 523(a)(1)(A) does not except an individual debtor’s liability for a corporation’s unpaid unemployment insurance contributions from discharge when the wages were earned from the corporation rather than the debtor.

Eliawira Ndosi and Barbara Ndosi v. State of Minnesota · filed 1991-12-17(a)(1)(A)

In conclusion, 11 U.S.C. § 523(a)(1)(A) does not except from discharge the debtors’ liability for NEI’s unpaid unemployment insurance contributions.

Section 523(a)(7)(B) permits discharge of a tax penalty imposed with respect to a transaction or event more than three years before the bankruptcy petition, even if the underlying tax is not discharged.

Byrum v. Internal Revenue Service (In re Byrum) · filed 1992-01-17(a)(7)(B)

Second, subsection 523(a)(7)(B) states that the tax penalty is dischargeable if it is imposed with respect to a transaction or event that occurred more than three years before the date of the filing of the petition. ... But subsection 523(a)(7)(B) represents an independent basis for discharge, as is evidenced by the use of the word or separating paragraphs 7(A) and 7(B).

Section 523(a)(7)(B) discharges tax penalties tied to otherwise nondischargeable withholding taxes when the relevant events occurred more than three years before the bankruptcy filing.

Hardin v. United States (In Re Hardin) · filed 1992-03-25(a)(7)(B)

This Court agrees with the Roberts court that § 523(a)(7)(B) renders dischargeable these penalties due on the nondischargeable withholding taxes owed to the Cabinet by the plaintiffs.

Section 523(a)(7)(B) discharges tax penalties imposed with respect to transactions or events that occurred more than three years before the bankruptcy petition, even if the underlying tax is nondischargeable.

Gregory W. McKay Plaintiff-Counter-Claimant-Appellant v. United States of America, Defendant-Counter-Claimant-Appellee · filed 1992-02-24(a)(7)(B)

Section 523(a)(7)(B) of the Bankruptcy Code provides that a tax penalty “imposed with respect to a transaction or event that occurred before three years before the date of the filing of the petition” is discharged.

Section 523(a)(1)(A) excepts a tax debt from discharge when the assessment at issue was made within 240 days before the bankruptcy petition, even if an earlier assessment concerned the same tax year.

Blank v. United States, Internal Revenue Service (In Re Blank) · filed 1992-02-27(a)(1)(A)

Thus, the assessment was made within 240 days before Debtor filed his petition and is, then, entitled to priority under § 507(a)(7)(A)(ii) and excepted from discharge pursuant to § 523(a)(1)(A).

Section 523(a)(1)(A) excepts an income tax debt from discharge when the return’s last due date, including extensions, falls within three years before the bankruptcy petition.

Gidley v. United States (In Re Gidley) · filed 1992-03-17(a)(1)(A)

Their 1986 income tax return was initially due on April 15, 1987; however, plaintiffs were granted an automatic extension that extended the due date to August 15, 1987. The plaintiffs filed a chapter 7 petition on June 12, 1990. Therefore, the 1986 income tax return was last due within three years before the bankruptcy cases was filed. Consequently, the claim of the United States for the unpaid 1986 federal income taxes is a seventh priority claim and excepted from discharge under sections 523(a)(1)(A) and 507(a)(7)(A)(i).

Section 523(a)(7) makes penalties imposed on a nondischargeable tax debt nondischargeable, so they remain the debtor’s personal liability after bankruptcy.

Fullmer v. United States · filed 1992-04-28(a)(7)

Furthermore, tax penalties imposed pursuant to a nondischargeable tax debt are nondischargeable pursuant to 11 U.S.C. § 523(a)(7) (1988) and thus survive bankruptcy as a personal liability as well.

Section 523(a)(1)(A) makes income taxes nondischargeable when they are assessed within 240 days before the bankruptcy petition; a California deficiency is assessed when the proposed assessment becomes final.

In Re Jack B. King Paula H. King, Debtors. Jack B. King Paula H. King v. Franchise Tax Board of the State of California · filed 1992-04-16(a)(1)(A)

Taxes measured by income or gross receipts that are assessed within 240 days of the filing of a bankruptcy petition are non-dischargeable in bankruptcy. 11 U.S.C. §§ 507(a)(7)(A)(ii), 523(a)(1)(A).

Section 523(a)(1)(A) makes income taxes nondischargeable when they are assessed within the 240-day priority period.

King v. Franchise Tax Board of California (In re King) · filed 1992-04-16(a)(1)(A)

Taxes measured by income or gross receipts that are assessed within 240 days of the filing of a bankruptcy petition are non-dischargeable in bankruptcy. 11 U.S.C. §§ 507(a)(7)(A)(ii), 523(a)(1)(A).

Section 523(a)(7)’s discharge period for tax penalties accounts for tolling during a debtor’s prior bankruptcy because penalties are assessed and collected like taxes.

Linder v. United States (In Re Linder) · filed 1992-04-30(a)(7)

Its ruling that penalties for tax year 1985 were dischargeable overlooks statutory provisions entitling the government to assess and collect penalties in the same manner as taxes. Therefore, the same tolling provisions apply. The bankruptcy court’s decision denying the dis-chargeability of the debtors’ 1982, 1983 and 1985 delinquent taxes is AFFIRMED, and its decision discharging the penalties for tax year 1985 is REVERSED.

Section 523(a)(1)(A) excepts from discharge taxes entitled to priority under section 507(a)(7), including income taxes still assessable when the bankruptcy petition is filed.

Crawford v. United States, Internal Revenue Service (In Re Crawford) · filed 1992-05-01(a)(1)(A)

Therefore, the 1983 taxes have priority status pursuant to section 507(a)(7)(A)(iii). Because the taxes are taxes of the kind specified in section 507(a)(7), they are also non-dischargeable pursuant to section 523(a)(1)(A).

Section 523(a)(1)(A) makes priority tax debts nondischargeable; the three-year look-back period excludes time when a bankruptcy court's disallowance barred the IRS from collecting.

In Re Henry E. Montoya, M.D. And Juanita F. Montoya, Debtors. Henry E. Montoya, M.D. And Juanita F. Montoya v. United St · filed 1992-06-25(a)(1)(A)

Exceptions are found in § 523 which renders nondischargeable debts which are entitled to priority under § 507 of the Code. ... Because the IRS has not yet had 3 years and 6 months to collect the assessments, the Montoya’s tax liability is not discharged.

Section 523(a)(1)(B)(i) excepts tax debt from discharge when the debtor has not filed a required return; adding to the return’s jurat makes the form ineffective as a return.

Schmitt v. United States (In Re Schmitt) · filed 1992-06-04(a)(1)(B)(i)

I find that the jurat clause has been qualified if any addition or deletion is made to it. ... Therefore, pursuant to 11 U.S.C. § 523(a)(1)(B)(i) the tax and associated interest owed by debtor for tax years 1979— 1985 is excepted from his discharge.

Section 523(a)(1)(B)(i) does not treat a substitute return filed by the IRS as a return filed by the debtor, so the tax debt remains nondischargeable.

Chapin v. United States (In Re Chapin) · filed 1992-06-22(a)(1)(B)(i)

Accordingly, this court now finds, as have all other courts to address the issue, that the word “return” in § 523 means only those returns actually filed by the debtors.

Section 523(a)(1)(B)(i) excepts tax debts from discharge when required returns were not filed; the debtor’s amended Forms 1040X filed after assessment did not count as returns here.

Arenson v. US THROUGH IRS · filed 1992-06-25(a)(1)(B)(i)

The IRS argues that Carapella can be distinguished from the instant action because Revenue Ruling 74-203 is limited to a finding that Form 870 constitutes a return for purposes of section 523(a)(1)(B)(i) and the IRS has not made a similar ruling with regard to an amended return Form 1040X. After reviewing the language of section 523(a)(1)(B)(i) and the Carapella case, I find that the appellee's argument is well taken.

An amended Form 1040X filed after the IRS assesses tax does not qualify as a filed return under § 523(a)(1)(B)(i), so the tax debt is not discharged.

Arenson v. United States ex rel. Internal Revenue Service · filed 1992-06-25(a)(1)(B)(i)

The IRS argues that Carapella can be distinguished from the instant action because Revenue Ruling 74-203 is limited to a finding that Form 870 constitutes a return for purposes of section 523(a)(l)(B)(i) and the IRS has not made a similar ruling with regard to an amended return Form 1040X. After reviewing the language of section 523(a)(l)(B)(i) and the Carapella case, I find that the appellee’s argument is well taken.

Section 523(a)(1)(A) excepts priority income taxes from discharge, but a return due exactly three years before the bankruptcy petition falls outside the incorporated priority period.

Luke v. Internal Revenue Service (In Re Luke) · filed 1992-06-12(a)(1)(A)

In order to qualify, the tax return for 1987 must therefore have been last due after April 15, 1988. However, it was last due on April 15, 1988. Therefore, it is not entitled to priority and, a priori, is not nondischargeable under § 523(a)(1)(A).

Section 523(a)(7)(B) makes tax penalties dischargeable when the events giving rise to them occurred more than three years before the bankruptcy petition, even if the underlying tax is not discharged.

Torres v. Illinois Department of Revenue (In Re Torres) · filed 1992-06-30(a)(7)(B)

Thus, all tax penalties relating to events over three years old as of the petition date are dis-chargeable regardless of whether such event gave rise to a non-dischargeable tax.

Section 523(a)(1)(C) excepts tax debts from discharge when unexcused late returns and significant income understatements show, by a preponderance of the evidence, a willful attempt to evade tax.

Berzon v. United States (In Re Berzon) · filed 1992-07-07(a)(1)(C)

The evidentiary standard now applicable to § 523 nondis-chargeability determinations is the preponderance of the evidence test. Under that standard, a finding of a combination of unexcused late filings and significant income misrepresentation are alone sufficient to show a willful attempt to evade payment for purposes of § 523(a)(1)(C).

Section 523(a)(1)(C) requires making a fraudulent tax return, not filing one.

Levinson v. United States · filed 1992-07-15(a)(1)(C)

Section 523(a)(1)(C) of the Bankruptcy Code speaks only of “making” a fraudulent return, not “filing” one.

Section 523(a)(1)(C) requires proof by a preponderance of the evidence to except a debtor’s federal tax liabilities from discharge.

United States v. Towe (In Re Towe) · filed 1992-09-04(a)(1)(C)

The I.R.S. failed to show by a preponderance of the evidence that the discharge as to Mrs. Towe should be denied, or that her federal tax liabilities should be excepted from discharge.

Section 523(a)(1)(C) makes taxes on intentionally unreported income nondischargeable when the failure to report causes an underpayment.

Brackin v. United States (In Re Brackin) · filed 1992-10-01(a)(1)(C)

The Court also finds that he intentionally failed to report this income, and by doing so, underpaid his taxes. Accordingly, taxes due and owing on the unreported income of approximately $160,-000.00, including any penalty or interest, is the only debt that is nondischargeable pursuant to 11 U.S.C. § 523(a)(1)(C).

Section 523(a)(7) makes a tax penalty nondischargeable in chapter 7 when the related tax is nondischargeable, unless the event giving rise to the penalty occurred more than three years before the bankruptcy petition.

In Re Quick · filed 1992-10-23(a)(7)

Instead, as discussed above, upon conversion to a chapter 7 proceeding, the penalty portion of the claim became nondischargeable. The effect of 11 U.S.C. § 523(a)(7), which pursuant to 11 U.S.C. § 727(b) is applicable in a chapter 7 proceeding, is to make a tax penalty nondischargeable if the tax to which it relates is nondischargeable, unless the event giving rise to the penalty occurred more than three years prior to the filing of the bankruptcy petition.

Section 523(a)(1)(A) excepts priority tax debts under section 507(a)(7)(A)(i) from discharge.

Gidley v. United States (In Re Gidley) · filed 1992-11-02(a)(1)(A)

Because the claim of the United States for unpaid taxes is a priority claim excepted from discharge under §§ 523(a)(1)(A) and 507(a)(7)(A)(i), the court finds that the Bankruptcy Court did not err in ordering the federal income taxes, penalties, and interest in the amount of $12,603.83 due for the taxable year 1986 excepted from the Gidleys’ discharge.

Section 523(a)(7) makes non-pecuniary loss penalties nondischargeable when the underlying transaction or event occurred within three years of the bankruptcy filing.

Cennamo v. United States (In Re Cennamo) · filed 1992-11-16(a)(7)

The Bankruptcy Code provides that non-pecuniary loss penalties which relate to a transaction or event that occurred within three years of the filing of a bankruptcy petition are non-dis-chargeable. 11 U.S.C. § 523(a)(7) (1988). The penalties assessed pursuant to § 6700 and § 6701 were the result of transactions which occurred during taxable years 1982 through 1985. Accordingly, these penalties were clearly not within the three year period specified in § 523(a)(7) and were correctly discharged.

Section 523(a)(1)(A) excepts qualifying income tax debt from discharge, and the incorporated three year period is suspended during a prior bankruptcy case.

Bowling v. Internal Revenue Service (In Re Bowling) · filed 1992-10-20(a)(1)(A)

Accordingly, the court concludes that the three year period of § 507(a)(7)(A)(i) as incorporated in § 523(a)(1)(A) was suspended during the course of debtor’s prior bankruptcy case, and as a result the court holds that debtor’s 1988 income tax debt is not dischargeable in this bankruptcy case.