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Home / Opinion Digests / IRS’s offset right trumps debtor’s right to receive tax overpayment (access required)

IRS’s offset right trumps debtor’s right to receive tax overpayment (access required)

The case of first impression held that despite a bankruptcy code section providing that exempt property cannot be used to satisfy a debtor’s prepetition debts, the tax code makes clear the government’s right to set-off a tax overpayment against a taxpayer’s preexisting tax liabilities extends to an overpayment due to a debtor. Background This case requires the ...