- 11 U.S.C.
In re Hermann
Apr
03
2013
Ruling
Debtor who changed scope of family farming operation and form of organization was still a family farmer eligible for relief.
Procedural posture
Debtor, who had dissolved his family farm partnership with his brother, sought confirmation of his proposed chapter 12 plan of reorganization, and met the requirements of 11 U.S.C.S. §§ 101(18)(A) and 109(f). Taxing authority creditors, the Internal Revenue Service (IRS) and the state (IDOR), objected to the plan, asserting that 11 U.S.C.S. § 1222(a)(2)(A) did not apply to the debtor.
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Court
:
- 11 U.S.C.
In re Ferguson
Jan
02
2013
Ruling
Confirmation denied due to proposal to use estate assets to pay postpetition tax liability.
Procedural posture
The debtors sought confirmation of a first amended chapter 12 plan of reorganization. Objections to confirmation were filed by certain creditors. The standing chapter 12 trustee asserted a verbal objection and filed a brief in opposition to confirmation.
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Court
:
- 11 U.S.C.
Hall v. United States
May
14
2012
Ruling
Federal tax liability resulting from postpetition sale of debtors' farm was not incurred by the estate and was neither collectible nor dischargeable in debtors' Chapter 12 plan.
Procedural posture
Debtors who filed a bankruptcy petition under chapter 12 and then sold their farm proposed a plan which provided for treatment of the capital gains tax from the sale as an unsecured claim, and respondent United States objected. Upon the grant of a writ of certiorari, the debtor appealed the judgment of the U.S. Court of Appeals for the Ninth Circuit which held that the tax was not subject to treatment in the debtors' plan.
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Court
: U.S. Supreme Court
- 11 U.S.C.
Smith v. United States (In re Smith)
Mar
10
2011
Ruling
Capital gains tax obligations resulting from postconfirmation sale of farm assets was not subject to terms of plan and would not be treated as a general unsecured claim.
Procedural posture
When, citing 11 U.S.C.S. § 1222(a)(2)(A), chapter 12 debtors asked the court to declare that a capital gains tax obligation resulting from their postconfirmation sale of farm assets was properly treated as a general unsecured claim that was not entitled to priority, the IRS objected. The IRS also asserted that the court lacked jurisdiction to determine the issue by reason of sovereign immunity.
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Court
:
- 11 U.S.C.
United States v. Hall
Aug
16
2010
Ruling
District court erred in reversing bankruptcy court ruling sustaining IRS objection to plan that would not have paid taxes in full from proceeds of sale of farm.
Procedural posture
United States challenged a decision of the District Court for the District of Arizona reversing the bankruptcy court's decision, which sustained the IRS's objection to appellee chapter 12 debtor's plan of reorganization.
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Court
:
Judge or Jurisdiction information not available
- 11 U.S.C.
IRS v. Ficken (In re Ficken)
May
07
2010
Ruling
Income tax liability for sales of cattle in debtor's farming operation properly held to be unsecured nonpriority claim.
Procedural posture
Debtor brought an adversary proceeding against appellant Internal Revenue Service (IRS) seeking a determination that the debtors' income tax liability from sales of cattle in their farming operation constituted an unsecured, nonpriority claim under 11 U.S.C.S. § 1222(a)(2)(A). The IRS appealed the order of the Bankruptcy Court for the District of Colorado which granted summary judgment to the debtors.
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Court
:
Judge or Jurisdiction information not available
- 11 U.S.C.
In re Rickert
Jan
09
2009
Ruling
Chapter 12 plan could be amended to treat postpetition capital gains taxes from prepetition sale of livestock as unsecured nonpriority claim.
Procedural posture
Chapter 12 debtors filed a motion for permanent treatment of a claim under 11 U.S.C.S. § 1222. The United States/Internal Revenue Service filed an objection.
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Court
:
- 11 U.S.C.
Hall v. United States (In re Hall)
Aug
07
2008
Ruling
Chapter 12 debtors' postpetition capital gains taxes on proceeds from sale of farm equipment were an administrative expense and unsecured nonpriority claim.
Procedural posture
Appellant debtors sought review of a decision of the United States Bankruptcy Court for the District of Arizona, which sustained the objection of appellee Internal Revenue Service (IRS) to the chapter 12 plan under 11 U.S.C.S. § 1222(a)(2)(A) and determined that the debtors were personally liable for federal capital gains taxes incurred from the post-petition sale of farming real property.
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Court
:
- 11 U.S.C.
In re Schilke
Nov
27
2007
Ruling
Postpetition taxes arising from sale of farm assets were dischargeable.
Procedural posture
The IRS objected to the confirmation of a chapter 12 debtor's plan.
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Court
:
- 11 U.S.C.
In re Hall
Oct
02
2007
Ruling
Capital gains tax on postpetition sale of farm by chapter 12 estate was not a priority administrative expense and could not be treated as unsecured.
Procedural posture
After filing their petition, the debtors sold farm land which generated a capital gains tax. In their amended chapter 12 plan, the debtors proposed to include that tax liability as an unsecured claim, relying on 11 U.S.C. § 1222(a)(2)(a). The IRS filed an objection to the plan.
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Court
: