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IRS Can’t Sue After Not Raising Claims in Bankruptcy Proceedings

Aug. 8, 2022, 6:42 PM

The IRS can’t sue two professional firms based on events from a bankruptcy case because it could have raised its claims in the bankruptcy case, the Sixth Circuit held.

The ruling Monday affirmed a district court’s decision to dismiss the case against law firm Schafer and Weiner PLLC and business advisory firm Harmon Partners LLC. The two firms were previously appointed to assist a company that had petitioned for bankruptcy in 2019. The IRS held a claim of nearly $6.9 million against the bankruptcy petitioner.

The IRS brought suit against the ...