Forbes: Decade-Long Limitations Period For IRS Can Be Utilized By Bankruptcy Trustee For All Creditors In Zagaroli (February 8, 2021)

Forbes has published an article, “Decade-Long Limitations Period For IRS Can Be Utilized By Bankruptcy Trustee For All Creditors In Zagaroli” which discusses Mitchell v. Zagaroli as it pertains to debtors with outstanding federal tax debt in bankruptcy. The summary of the article is as follows:

At some point, you get enough opinions on an issue that you have to say “that is the law”, and we have reached that point with this particular issue. The ramifications are easily enough identified: If a debtor is going to file for bankruptcy, then they don’t want to either (1) have any outstanding IRS debt that the IRS could make a claim for, or (2) list any outstanding IRS debt even as a precaution. Do one of those two things and transferees of the debtor then become vulnerable for transfers going back as far as a decade.

Click here to see full article: “Decade-Long Limitations Period For IRS Can Be Utilized By Bankruptcy Trustee For All Creditors In Zagaroli”

To download the full opinion, click here: Mitchell v. Zagaroli (In re Zagaroli), 2020 WL 6495156 (Bk.W.D.N.C., Nov. 3, 2020).

Posted by Elise Kim, Managing Associate Editor, Wealth Strategies Journal.

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