As a Bankruptcy Lawyer, I am providing the details of the Bankruptcy Court’s ruling on a Proof of Claim that was filed by the IRS. The IRS are held to the same standards as anyone else in bankruptcy. If the IRS is Asleep at the Wheel, they lose. Bankruptcy Proof of Claims filings are made. The IRS as well as debtors must adhere to Bankruptcy Court Rules.
IRS began collection efforts for penalties on a Debtor’s business for failing to pay $93,000 withholding taxes.
Shortly after the collection began, the Debtor filed bankruptcy. Accordingly, the IRS filed a Proof of Claim. As the Debtor did not agree with the IRS’s Proof of Claim, the Debtor filed an objection. Subsequently, the Debtor sent a copy to the address on the Proof of Claim.
21 days passed and the IRS sat on their rights and did not file a response. The Bankruptcy Court sustained the objection and disallowed the IRS’s Proof of Claim. https://www.law.cornell.edu/rules/frbp/rule_3002
Even though the IRS was late in filing their Bankruptcy Proof of Claim response, they moved to vacate the Order disallowing its Proof of Claim. The Bankruptcy Court agreed with the IRS and vacated the Order.
The Debtor’s attorney appealed to the District Court and the Order of the Bankruptcy Court was affirmed and claim was allowed.
The Debtor strongly disagreed with the Court’s ruling. As a result, the Debtor’s bankruptcy lawyer appealed to the 8th Circuit Court of Appeals and the matter was reversed and remanded.
Appellant Court agreed with the Debtor and the IRS’ bankruptcy mistake of a 93 thousand dollar claim is not allowed.
As you can see, the Debtor won. It pays to appeal and fight for your debtor rights in Bankruptcy http://www.njb.uscourts.gov/ . The IRS fell asleep at the wheel. Deadlines work both ways – IRS must follow deadlines as all taxpayers must.
Bankruptcy is a specialized field and you should always hire a Board Certified Attorney to fight for your rights.
I am here to help you. Call me: Ralph A. Ferro, Jr., Esq. (201) 446-5904 Board Certified Bankruptcy Attorney in Consumer Law https://njbankruptcylawfirms.com/board-certification/ .