Fifth Circuit Rules that the Penalty under the ACA Isn’t a Priority Tax Claim
The exaction for failure to purchase health insurance isn’t an excise tax ‘on a transaction’ under Section 507(a)(8)(E)(i).
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Creditors of Bankrupt Driller Allege Fraud, Want CEO Siffin Out
A group of MTE Holdings creditors want its Chief Executive Officer — real estate developer Mark Siffin — replaced by a court-appointed official amid accusations of fraud and mismanagement at the bankrupt oil driller, Bloomberg News reported. Three stakeholders in the chapter 11 case — Natixis SA, Riverstone Credit Management LLC and a group of drilling service providers — have asked Bankruptcy Judge Christopher Sontchi to appoint a trustee to replace Siffin during bankruptcy. Lawyers for Natixis criticized MTE’s operating subsidiary, MDC Energy LLC, in court papers for “a near complete lack of transparency” and “gross mismanagement,” while Riverstone alleged MTE leadership has “exhibited fraud, dishonesty, and incompetence.” The U.S. Trustee is also requesting a trustee in the MTE case, saying that “management have shown that they cannot be trusted” to carry out the fiduciary duties required in chapter 11. The groups have voiced concern about millions of dollars in cash allegedly transferred out of MDC in the months before its bankruptcy, including $8.5 million in consulting fees to Siffin, according to Riverstone’s court documents.
Trump Sues Manhattan DA Cyrus Vance Over Subpoena for His Tax Returns
President Donald Trump filed a lawsuit Thursday against Manhattan District Attorney Cyrus Vance, who subpoenaed Trump's accounting firm for eight years of Trump's personal and corporate tax returns earlier this month, NBC News reported. The subpoena stems from Vance's criminal investigation into the Trump Organization about hush money payments made to two women who have alleged affairs with the president. Trump has strongly denied the affairs. The lawsuit, filed in the U.S. District Court for the Southern District of New York, names Vance and the president's tax preparer, Mazars USA, as defendants. It argues that the Manhattan district attorney should not receive Trump's tax returns because "'[v]irtually all legal commenters agree' that a sitting President of the United States is not 'subject to the criminal process' while he is in office.” Jay Sekulow, the president's lawyer, commented on the constitutionality of Vance's probe, saying, “In response to the subpoenas issued by the New York County District Attorney, we have filed a lawsuit this morning in Federal Court on behalf of the President in order to address the significant constitutional issues at stake in this case." Vance's office is probing hush money payments made during the 2016 election to adult film star Stormy Daniels and ex-Playboy model Karen McDougal, both of whom have alleged affairs with Trump, which he has denied.
Journal Issue
Bankruptcy Code
Journal Issue
Bankruptcy Code
Bankruptcy Rule
Wealthy New Yorkers Are Ditching City’s High Taxes for Miami
Affluent New Yorkers, financially distressed by recent changes to the nation’s tax laws, are bucking the Big Apple’s high costs and heading for an economic paradise: Florida’s Miami-Dade County area, the New York Post reported. The famed resort is luring the disgruntled urbanites with the prospect of a considerable annual tax and cost-of-living savings of between $20,000 to $120,000 for high earners. The federal Tax Cuts and Jobs Act signed into law in late 2017 brought with it sweeping changes that limited deductions on state and local taxes — with taxpayers particularly hard hit in New York, New Jersey and Connecticut, which are among the states with the highest income and property taxes. According to U.S. Census Bureau data, Florida had the highest number of migrants from other states, with New York contributing the most — 63,722 people during the 12 months ended in July 2018. Miami-Dade is catching particular interest from dissatisfied New Yorkers. A local executive says New York’s tax woes have been as positive for business as Venezuela’s socialist government, credited for thousands of Venezuelans who have fled to Florida. Armando Codina, executive chairman of Codina Partners, developer of Downtown Doral. estimates as many as 1 in 4 of the residential units for sale in his community of 60,000 will be purchased by New Yorkers, expanding the permanent ex-New Yorker population by another 5,000. The reason is not surprising. A study posted by the Unhappy New Yorkers Web site calculates savings of nearly $25,000 on an annual income of $100,000 in Dade County compared with New York City, owing to lower taxes and lower cost of living. And that savings translates to a tidy $235,000 on $1 million.