Uber’s Payment in Engineer’s Bankruptcy Plan May Carry Tax Bill

Former Uber Technologies Inc. engineer Anthony Levandowski’s bid to avoid paying taxes on his bankruptcy plan’s proposed settlement has run into objections from the U.S. Justice Department and a California agency.

Levandowski won approval last week to solicit creditors’ votes for a bankruptcy plan that would involve Uber paying an unspecified amount to settle Google LLC’s $179 million claim tied to the engineer’s jump from Google to Uber. Levandowski asked the bankruptcy court to find that Uber’s proposed payment to Google doesn’t increase his net wealth and so doesn’t count as taxable gross income.

But no tax return containing the ...