Iowa Department of Revenue v. DeVries, No. 20-6011 (8th Cir. 2020)
Annotate this CaseThe Bankruptcy Appellate Panel reversed the bankruptcy court's order confirming the Chapter 12 plan of debtors. The panel held that the plain language of Bankruptcy Code 1232 does not allow a Chapter 12 plan to compel a taxing authority to disgorge pre-petition withholdings. In this case, contrary to debtors' position, section 1232 provides no basis to magically reverse the application of the pre-petition withheld funds when calculating the IDR's claim.
Court Description: [Schermer, Author, with Nail and Dow, Bankruptcy Judges] Bankruptcy Appellate Panel. Bankruptcy Code Sec. 1232 does not allow a Chapter 12 plan to compel a taxing authority to disgorge pre-petition witholdings; decision to confirm debtors' Chapter 12 plan reversed.
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