Court Must Consider Totality of the Circumstances when Determining if Debtor Intended to Evade or Defeat Taxes

Court Must Consider Totality of the Circumstances when Determining if Debtor Intended to Evade or Defeat Taxes

Debtor filed this adversary proceeding in order to obtain a declaration that federal income taxes owed for tax years 2005, 2006, 2007, 2009, and 2011 were discharged under 11 U.S.C. § 523(a)(1)(A) when Debtor received his general discharge in Bankruptcy Case No. 15-10292. The IRS seeks judgment in its favor as a matter of law on the ground that undisputed material facts establish that he willfully evaded paying his tax liabilities, which conduct excepted the tax liabilities from discharge under § 523(a)(1)(C).

After the IRS answered the complaint, Debtor stipulated that his 2007 tax liability is non-dischargeable under § 523(a)(1)(B), and that his 2011 tax liability is non-dischargeable under §§ 523(a)(1)(A) and 507(a)(8). Whether the 2005, 2006 and 2009 tax liabilities are excepted from discharge under § 523(a)(1)(C) remains at issue.

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