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Home / Opinion Digests / Attempt to recover debtor’s IRS tax penalty rejected (access required)

Attempt to recover debtor’s IRS tax penalty rejected (access required)

Where a trustee sued the United States to void a debtor’s tax penalty obligations to the IRS, and to recover the debtor’s prior payments to the IRS, his claims were dismissed. A “noncompensatory tax penalty that is statutorily required and properly imposed” is not “within the ambit of the ‘exchanges’ targeted in the fraudulent-transfer laws.” Background The ...