IRS Immune From State Fraud Transfer Claims, 7th Circ. Says

Law360, New York (February 5, 2014, 4:29 PM EST) -- The Seventh Circuit on Tuesday said the Internal Revenue Service could not be sued in a bankruptcy-related action to recoup an allegedly fraudulent federal tax payment, finding the IRS immune from such state law claims under the Bankruptcy Code.

In a unanimous opinion, Judge Joel M. Flaum said the Bankruptcy Code gives the IRS immunity to state fraudulent transfer lawsuits because of its unambiguous language, which clearly bars unsecured creditors from bringing such actions outside of bankruptcy.

“We decline [the] invitation to read an exception into...
To view the full article, register now.




Case Information

Case Title

USA v. Equipment Acquisition Resource

Case Number



Appellate - 7th Circuit

Nature of Suit

Date Filed

March 4, 2013

Law Firms

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.