The circuits are now split 3/1, with the majority finding a waiver of sovereign immunity under Section 544(b)(1) for lawsuits by a trustee based on claims that an actual creditor could not have brought outside of bankruptcy.
The Internal Revenue Service has unveiled an $80 billion plan to transform itself into a “digital first” tax collector focused on customer service and cracking down on wealthy tax evaders, The New York Times reported. The move lays the groundwork for an ambitious 10-year overhaul of one of the most scrutinized arms of the federal government. The effort is a key part of President Joe Biden’s economic agenda, which aims to reduce the nation’s $7 trillion of uncollected tax revenue and use the funds to combat climate change, curb prescription drug prices and pay for other initiatives prized by Democrats. The plan is also at the heart of the White House’s goal of making tax administration fairer. The report indicates that more than half the new money will be dedicated to ensuring that rich investors and large corporations cannot avoid paying the taxes that they owe. The $80 billion is the largest single infusion of funds in the agency’s history and was included in the Inflation Reduction Act, the sweeping climate and energy legislation that Democrats pushed through last year. According to the Biden administration, the investment will yield hundreds of billions of dollars in deficit reduction, but efforts to bolster the IRS have drawn strong opposition from Republicans, who have long accused the agency of improperly targeting them. The report was requested by Treasury Secretary Janet L. Yellen. (Subscription required to view article.)
A financially troubled corporation confronts many issues, including those raised by federal income tax law. While relevant income tax law is based on a few policies that are relatively simple to summarize, implementation of these policies drives significant complexity.
