Divided U.S. Supreme Court: Debtors' Farm Sale Tax Liability Not Dischargeable

WASHINGTON, D.C. - (Mealey's) A divided U.S. Supreme Court ruled 5-4 Monday that the federal income tax liability that resulted from a debtor's post-petition farm sale is not "incurred by the estate" for the purposes of 11 U.S. Code Section 503(b); therefore, it is neither collectible...

Professor Kenneth N. Klee on the Supreme Court's Holding in Hall v. United States, 2012 U.S. LEXIS 3781 (May 14, 2012)

Note: Case and statute links below are accessible by lexis.com subscribers Are farmers who sell their farms while in chapter 12 bankruptcy required to pay capital gains tax to the IRS or can they use the sale proceeds to pay other creditors? Professor Kenneth N. Klee examines the Supreme Court...