Briggs v. United States (In re Briggs)
511 B.R. 707
Bankr. N.D. Ga.2014Background
- IRS seeks partial discharge of taxes for 2002, 2010, and 2011; 2010 and 2011 due within three years of petition date.
- Debtor filed 2010 and 2011 returns after extensions; petition filed March 23, 2013 in Chapter 7.
- 2002 return was filed in 2006 after an assessment in 2005; IRS abated part of liability in 2008 and levied portions.
- IRS asserted 2010/2011 debts non-dischargeable under 523(a)(1)(A) and 507(a)(8); 2002 debt under 523(a)(1)(B)(i).
- Court held 2010/2011 taxes non-dischargeable; 2002 return may qualify as a return under 523(a)(1)(B)(i); partial grant/denial of summary judgment.
- Proceeding is a core bankruptcy matter with jurisdiction under 28 U.S.C. § 1334 and § 157.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Are 2010 and 2011 taxes dischargeable? | IRS: those taxes were due within three years before filing; non-dischargeable. | Debtor argues timing or other factors affect discharge status. | Discharge denied for 2010 and 2011 taxes. |
| Does 2002 tax debt qualify as a return under 523(a)(1)(B)(i)? | Return filed post-assessment cannot be a return; debt non-dischargeable. | Late-filed return can be a return; should be treated under Beard test. | Question reserved; court denies summary judgment for 2002, finding possible return. |
| Does the debt arise from assessment or late-filed return affect discharge? | Debt arises from assessment; no timely return for discharge. | Beard analysis governs; focus on honest and reasonable return regardless of timing. | Debt’s dischargeability analyzed under Beard framework; 2002 may be dischargeable if honest and reasonable. |
Key Cases Cited
- Rhodes v. United States (In re Rhodes), 498 B.R. 357 (Bankr.N.D.Ga.2013) (defines debt as right to payment; focuses on source of debt)
- Martin v. United States (In re Martin), 500 B.R. 1 (D. Colo.2013) (post-BAPCPA treatment of returns and timeliness)
- Payne v. United States (In re Payne), 431 F.3d 1055 (7th Cir.2005) (Beard four-prong test; timing considerations discussed)
- Hindenlang v. United States (In re Hindenlang), 164 F.3d 1029 (6th Cir.1999) (post-assessment filings generally not considered returns)
- Colsen v. United States (In re Colsen), 446 F.3d 836 (8th Cir.2006) (recognizes subjective inquiry into honest/return content)