IRS Says It Can Target 'Gap Interest' On Bankrupt Lawyer

Law360, New York (January 13, 2014, 5:38 PM EST) -- The Internal Revenue Service can collect tax debt from a bankrupt attorney because the debt was not discharged in his Chapter 11 plan, the agency told an Arizona federal judge on Monday.

The IRS asked the judge to reverse a 2009 decision of the bankruptcy court, which ruled that the agency violated a discharge injunction for Arizona attorney Logan Johnston when it tried to collect interest on his tax debt that incurred during the four-year period between his filing for bankruptcy and getting a reorganization plan...
To view the full article, register now.




Case Information

Case Title

United States Internal Revenue Service v. Johnston

Case Number




Nature of Suit

Bankruptcy: Appeal


Roslyn O Silver

Date Filed

October 21, 2013


Government Agencies

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.