Giacchi v. United States of America Department of the Treasury Internal Revenue Service
856 F.3d 244
| 3rd Cir. | 2017Background
- Thomas Giacchi failed to timely file federal Forms 1040 for tax years 2000–2002.
- The IRS investigated and assessed his 2000 and 2001 liabilities in 2004; Giacchi filed Forms 1040 for those years shortly after assessment. The IRS assessed 2002 in 2005; Giacchi filed a 2002 Form 1040 in 2006.
- The belated filings led the IRS to abate part of its assessments, but the IRS had already estimated taxes without Giacchi’s timely input.
- Giacchi received a Chapter 7 discharge in 2010 (for Pennsylvania taxes) and later filed Chapter 13 in 2012, seeking a judgment that his federal 2000–2002 tax liabilities were discharged in the Chapter 7.
- Bankruptcy Court held the belated Forms 1040 were not “returns” under 11 U.S.C. § 523(a)(1)(B); the District Court affirmed. Giacchi appealed to the Third Circuit.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Forms 1040 filed after IRS assessment qualify as a “return” under § 523(a)(1)(B) | Giacchi: Content matters; belated forms still an honest and reasonable attempt to comply (focus on form content) | Government: Filing after assessment cannot serve return purpose; timing matters and such filings are not "returns" | Court: Belated filings after assessment do not satisfy Beard’s "honest and reasonable attempt" requirement and are not "returns" |
| Whether the BAPCPA definition of “return” (including “applicable filing requirements”) automatically bars late filings | Giacchi: Late filing does not automatically disqualify a form if it otherwise meets Beard factors | Government: Applicable filing requirements include timeliness; late filings generally fail to be returns | Court: Declines to adopt strict one-day-late rule; applies Beard factors (including timing) to conclude these late filings fail |
| Whether IRS abatement based on late forms makes them returns | Giacchi: Abatement shows filings served tax purpose and therefore are returns | Government: Abatement does not cure the failure to timely self-report; filings are self-serving | Court: Abatement does not convert post-assessment filings into honest, reasonable attempts to comply |
| Whether debtor’s asserted emotional difficulties excuse tardiness | Giacchi: Emotional state should excuse delinquency and show good faith | Government: Emotional state not shown to demonstrate good-faith attempt to comply | Court: Emotional-state claim insufficient; does not render filings honest and reasonable |
Key Cases Cited
- Beard v. Comm’r, 793 F.2d 139 (6th Cir.) (establishes four-factor test for what constitutes a tax "return")
- In re Justice, 817 F.3d 738 (11th Cir. 2016) (applies Beard and treats timing as relevant to return analysis)
- In re Moroney, 352 F.3d 902 (4th Cir. 2003) (post-assessment filings rarely qualify as returns)
- In re Hindenlang, 164 F.3d 1029 (6th Cir. 1999) (timing and purpose of filing affect return status)
- In re Colsen, 446 F.3d 836 (8th Cir. 2006) (takes content-focused view of Beard’s honesty prong)
- United States v. Galletti, 541 U.S. 114 (2004) (describes federal tax system as self-assessment)