WILMINGTON, Del. - Bankrupt PMGI Holdings Inc., the parent company of the adult entertainment empire carrying the name "Penthouse," on Nov. 1 filed an amended disclosure statement supporting its second amended joint plan of reorganization under which first- and second-lien noteholders would receive a combined $565,124,621.86 and all administrative and priority tax claims would be paid in full (In Re: PMGI Holdings Inc., No. 13-12404, Chapter 11, D. Del. Bkcy.).
NEW YORK - A federal judge in New York on Oct. 28 granted in part and denied in part a lead plaintiff's motion to compel a company to provide certain documents related to U.S. Securities and Exchange Commission and U.S. Department of Justice subpoenas issued seeking information related to their investigation into the company's income tax and other financial reporting (In re Weatherford International Securities Litigation, No. 11-1646, S.D. N.Y.; 2013 U.S. Dist. LEXIS 154446).
WASHINGTON, D.C. - President Obama signed a bill Oct. 17 to fund the government after the House and Senate reached an agreement Oct. 16 to end the partial government shutdown and to raise the debt ceiling without House Republicans' demands for a one-year delay of the Patient Protection and Affordable Care Act (PPACA) and to repeal a tax on medical devices being met.
BIRMINGHAM, Ala. - The county tax assessor for bankrupt Jefferson County, Ala., along with a group of elected officials, on Oct.10 filed a brief in the U.S. Bankruptcy Court for the Northern District of Alabama, contending that the county's plan of adjustment should not be approved (In Re: Jefferson County, Ala., No. 11-5736, Chapter 9, N.D. Ala. Bkcy.).
LITTLE ROCK, Ark. - The Arkansas Supreme Court on Oct. 10 affirmed certification of two classes of taxing entities in Arkansas suing online travel companies (OTCs) for allegedly failing to remit the full amount of taxes owed for online hotel bookings (Hotels.com, L.P., et al. v. Pine Bluff Advertising and Promotion Commission, et al., No. CV-13-342, Ark. Sup.; 2013 Ark. LEXIS 474).
WILMINGTON, Del. - The bankruptcy judge presiding over the Chapter 7 proceeding of Downey Financial Corp. on Oct. 8 ruled that a tax refund of more than $373 million belongs to the bankruptcy estate and cannot be claimed by the Federal Deposit Insurance Corp. (Alfred T. Giuliano, et al. v. Federal Deposit Insurance Corporation $(In Re: Downey Financial Corporation$), No. 08-13041 Adv. No. 10-53731, Chapter 7, D. Del. Bkcy.).
WASHINGTON, D.C. - The U.S. Supreme Court ruled Oct. 1 that it will hear the appeal of a lawsuit regarding whether a business that closes must pay Social Security and Medicare tax (together, FICA tax) on the severance checks its laid-off workers receive (United States v. Quality Stores, Inc., et al., No. 12-1408, U.S. Sup.; 2013 U.S. LEXIS 5128).
WASHINGTON, D.C. - The federal government partially shut down just after midnight Oct. 1 after the Democratic-controlled U.S. Senate continued to reject demands by the Republican-controlled House to impose a one-year delay of the Patient Protection and Affordable Care Act (PPACA) and to repeal a tax on medical devices as part of budget negotiations. Health care exchanges - a key component of the act - still open Oct. 1.
WASHINGTON, D.C. - The U.S. Senate will meet at 2 p.m. Sept. 30 - 10 hours before a government shutdown deadline - to decide what to do after the Republican-controlled House approved legislation yesterday imposing a one-year delay of the Patient Protection and Affordable Care Act (PPACA) and repealing a tax on medical devices in budget negotiations.
ATLANTA - The 11th Circuit U.S. Court of Appeals on Sept. 23 affirmed a lower court's ruling that a professional liability insurance policy provides a $1 million per-claim limit to cover an underlying settlement regarding an insured's negligence in tax preparations because the underlying complaint asserts only one claim (Camico Mutual Insurance Co. v. Abraham Rogozinski, et al., No. 12-15291, 11th Cir.; 2013 U.S. App. LEXIS 19460).
DENVER - A federal judge in Colorado reversed a bankruptcy court's ruling on Sept. 23, which had determined that a debtor's tax penalties assessed by the IRS were discharged when his Chapter 7 bankruptcy was discharged (Peter George Martin v. The United States of America $(In Re: Peter George Martin$), No. 12-03380, Chapter 7, D. Colo.; 2013 U.S. Dist. LEXIS 135702).
ATLANTA - Bankrupt Bankunited Financial Corp. on Sept. 4 filed a petition for rehearing en banc in the 11th Circuit U.S. Court of Appeals, contending that the appellate panel wrongly ruled that the Federal Deposit Insurance Corp. had rights to a $50 million tax refund because it didn't belong to the bankruptcy estate. Bankunited argues that en banc review is warranted because the appellate panel's ruling conflicts with precedent and the Bankruptcy Code (Bankunited Financial Group v. Federal Deposit Insurance Corporation $(In Re: Bankunited Financial Group$), No. 12-11392, Chapter 11, 11th Cir.).
DETROIT - The bankrupt City of Detroit on Sept. 3 moved in the U.S. Bankruptcy Court for the Eastern District of Michigan for authorization to direct city officials to release information regarding potential tax creditors and seeking approval to file that information under seal (In Re: City of Detroit, No. 13-53846, Chapter 9, E.D. Mich. Bkcy.).
NEW YORK - A lump-sum payment by a plaintiff's former employer in exchange for the plaintiff agreeing to withdraw his complaint qualifies as wages under the Federal Insurance Contributions Act (FICA) and is subject to FICA taxes, the Second Circuit U.S. Court of Appeals ruled Aug. 27 (Chester Gerstenbluth v. Credit Suisse Securities $(USA$) LLC, et al., No. 12-4125, 2nd Cir.; 2013 U.S. App. LEXIS 17841).
ATLANTA - A panel of the 11th Circuit U.S. Court of Appeals on Aug. 15 reversed a bankruptcy court's ruling that more than $48.11 million in tax refunds were part of the bankruptcy estate for a bank that had become insolvent and held that the money had to be turned over to the Federal Deposit Insurance Corp. for distribution to the debtor's subsidiary corporations (Clifford A. Zucker v. FDIC $(In Re: BankUnited Financial Corporation$), No. 12-11392, Chapter 11, 11th Cir.; 2013 U.S. App. LEXIS 16896).
DETROIT - The bankrupt City of Detroit on Aug. 2 moved for relief from the automatic stay in order to permit appeals of city property tax assessments, which it claims is appropriate on grounds that the equities weigh in favor of it and because it will cost the city less in the long run (In Re: City of Detroit, No. 13-53846, Chapter 9, E.D. Mich. Bkcy.).
NEW YORK - The Official Committee of Unsecured Creditors in the Chapter 11 bankruptcy case of AMR Corp., the parent company of American Airlines Inc., on July 22 filed a brief objecting to the proof of claim submitted by some aircraft finance parties on account of tax indemnity agreements (TIA claims) that are valued at $424 million, arguing that the claims should be disallowed (In Re: AMR Corp., No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.).
WILMINGTON, Del. - The reorganized version of Tribune Co. on July 19 filed a brief objecting to a motion filed by the Los Angeles County Treasurer and Tax Collector (LATTC) which sought relief from the permanent injunction contained in the debtor's reorganization plan, arguing that collection was barred by the bankruptcy court's discharge injunction (In Re: Tribune Company, No. 08-13141, Chapter 11, D. Del. Bkcy.).
NEW YORK - A panel of the Second Circuit U.S. Court of Appeals on July 22 reversed and remanded a case in which a bankruptcy court had granted bankrupt Worldcom Inc.'s objection to a claim filed by the Internal Revenue Service and had said that the IRS should refund Worldcom the amount it paid in excise taxes (Internal Revenue Service v. Worldcom Inc. $(In Re: Worldcom Inc.$), No. 12-803, 2nd Cir.; 2013 U.S. App. LEXIS 14763).
SACRAMENTO, Calif. - A group representing the interests of taxpayers in the Chapter 9 bankruptcy of Stockton, Calif., on July 8 filed a brief arguing that the U.S. trustee should appoint an official taxpayers committee to give it a voice on the city's proposal to increase taxes as part of its plan to exit bankruptcy (In Re: Stockton, Calif., No.12-32118, Chapter 9, E.D. Calif. Bkcy.).
CHICAGO - A panel of the Seventh Circuit U.S. Court of Appeals on July 8 affirmed a bankruptcy court ruling and determined that a debtor was liable for all the tax liens filed against him by the IRS, and it held that the language of the Bankruptcy Code was "straightforward" on the matter (Patrick J. Ryan v. United States of America $(In Re: Patrick J. Ryan$), No. 12-3398, Chapter 13, 7th Cir.; U.S. App. LEXIS 13710).
CHICAGO - A panel of the Seventh Circuit U.S. Court of Appeals on June 28 ruled that tax credits sought by the State of Illinois from a now-bankrupt company were not available based on amendments to the state's public utilities law (State of Illinois v. Chiplease Inc. $(In Re: Resource Technology Corp.$), No. 11-1633, Chapter 7, 7th Cir.; 2013 U.S. App. LEXIS 13271).
WILMINGTON, Del. - The Department of the Treasury for the State of Michigan (DOT) on June 27 filed a brief in the bankruptcy of video game maker THQ Inc., arguing that its plan of liquidation violates the federal Tax Injunction Act, 28 U.S. Code Section 1341, and therefore should be denied (In Re: THQ Inc., No. 12-13398, Chapter 11, D. Del. Bkcy.).
WASHINGTON, D.C. - The U.S. Supreme Court on June 17 denied review of a Ninth Circuit U.S. Court of Appeals ruling that antitrust laws do not preempt and a cigarette tax collection agreement between a Native American tribe and the State of Washington does not waive the tribe's sovereign immunity (Daniel T. Miller, et al. v. Chad Wright, et al., No. 12-1237, U.S. Sup.).
NEW ORLEANS - A panel of the Fifth Circuit U.S. Court of Appeals on June 4 affirmed a lower court's decision that held that a debtor company was liable for $173 million IRS tax lien despite that fact that the lien was originally levied against the previous owner of a property the debtor purchased prior to bankruptcy (Wren Alexander Investments LLC v. Internal Revenue Service $(In Re: Wren Alexander Investments LLC$), No. 12-50376, Chapter 11, 5th Cir.; 2013 U.S. App. LEXIS 11315).