Justices Pass on Challenge to Bankruptcy Rule on Tax Returns

The U.S. Supreme Court declined to hear an Arizona couple’s challenge to local bankruptcy rules requiring them to turn over their tax returns to their Chapter 13 trustee.

The justices’ April 19 decision not to take the case leaves in place a November 2020 federal appeals court ruling that the U.S. Bankruptcy Court for the District of Arizona’s rule is compatible with the bankruptcy code section on handling tax return information.

John and Erica Reichard, whose proposed Chapter 13 plan was rejected by the bankruptcy court, argued that surrendering their tax returns to the trustee violated their privacy. They also ...