Bankrupt Exela Unit Moves to Block $6 Million IRS Tax Collection

A bankrupt Exela Technologies unit is asking a court to block the IRS from collecting $6 million in back taxes, arguing the efforts are hindering its Chapter 11 reorganization.

The IRS has sent multiple levy notices and placed liens on DocuData Solutions’ property since its March bankruptcy filing, in violation of the automatic litigation stay that protects debtors, the company said in a Thursday filing with the US Bankruptcy Court for the Southern District of Texas.

The US bankruptcy code provision bars creditors from pursuing debt collection in bankruptcy without court authorization. The firm is seeking to enforce the stay ...