US Says High Court Must Undo Bankruptcy Clawback of IRS Payments

Aug. 9, 2024, 7:32 PM UTC

The federal government urged the US Supreme Court to fix a breach of its sovereign immunity rights by undoing a series of decisions allowing a bankruptcy trustee to claw back certain IRS tax payments.

Specifically, the justices should reverse a 2023 ruling by the US Court of Appeals for the Tenth Circuit finding that the bankruptcy trustee liquidating the estate of transportation company All Resort Group Inc. was permitted to claw back the company’s 2014 transfer of $145,000 to the IRS, Solicitor General Elizabeth Prelogar said in a filing Thursday.

In an opening salvo after the high court in June ...

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