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United States v. Dawes (In re Dawes)

United States v. Dawes (In re Dawes)

Ruling
Chapter 12 debtors' postpetition sale of land without permission of the bankruptcy court created tax liabilities that could not be treated as general unsecured claims.
Procedural posture

After declaring bankruptcy, appellee Chapter 12 debtors, with the permission of the bankruptcy court, sold several tracts of farm land which created income tax liabilities. The taxes were treated in the debtors' reorganization plan as newly incurred tax liabilities and unsecured claims. The bankruptcy court approved the plan and the U.S. District Court for the District of Kansas affirmed. Appellant IRS appealed.

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on June 21, 2011 , LexisNexis #0711-043