In re: Richard Jackson and Tamara Anne Jackson
EC-15-1072-DJuF
| 9th Cir. BAP | Dec 4, 2015Background
- Debtors Richard and Tamara Jackson filed Chapter 13 on Feb. 24, 2010; their 2009 tax return had not yet been filed.
- The IRS timely filed an Initial Claim (Apr. 5, 2010) that included an estimated, unassessed priority tax amount for 2009 and stated it would amend after the 2009 return was filed.
- Debtors filed the 2009 return on Oct. 14, 2010 (per § 1308); the IRS later audited and assessed a $35,309 tax liability for 2009 (Nov. 22, 2010).
- The IRS amended its claim on Apr. 11, 2011 to replace the 2009 estimate with the assessed amount and to reflect other audit increases for 2007–2008.
- Nearly four years later (Jan. 2015) the Jacksons objected under § 502(b)(9) and Rule 3002(c)(1), arguing the IRS’s asserted 2009 assessed claim was untimely because it was not filed within 60 days after the post-petition 2009 return.
- Bankruptcy court overruled the objection; the BAP affirmed, holding the Amended Claim related back to the timely Initial Claim and was not barred by § 502(b)(9) or the Rules.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether § 502(b)(9)/Rule 3002(c)(1) made the IRS’s amended claim for the 2009 assessed tax untimely | Jacksons: § 1308 makes post-petition returns trigger a 60-day deadline for governmental claims; IRS missed that deadline for the 2009 assessment | IRS: Initial Claim timely and provided fair notice; amendments to timely claims may relate back, so no separate 60-day cutoff bars amendment | Court: Amended claim relates back to the timely-filed Initial Claim and is not untimely under § 502(b)(9)/Rule 3002(c)(1) |
Key Cases Cited
- State of Cal. Bd. of Equalization v. Ulrich (In re Solari), 63 B.R. 115 (Bankr. C.D. Cal. 1986) (timely proof of claim may be amended when original gives fair notice)
- Pepperland, Inc. v. Westgate-California Corp., 621 F.2d 983 (9th Cir. 1980) (relation-back principle for amendments to proofs of claim)
- Osborne v. IRS (In re Osborne), 76 F.3d 306 (9th Cir. 1996) (IRS may amend an estimated income-tax claim to include later-assessed amounts)
- Samson v. W. Capital Partners, LLC (In re Blixseth), 684 F.3d 865 (9th Cir. 2012) (de novo review of statutory interpretation in bankruptcy appeals)