INTERNAL REVENUE SERVICE v. HOWARD D. JUNTOFF; GEORGE J. MCPHERSON and MELANIE A. MCPHERSON - Articles

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INTERNAL REVENUE SERVICE v. HOWARD D. JUNTOFF; GEORGE J. MCPHERSON and MELANIE A. MCPHERSON

Posted by: Tanja Trezise on Mar 21, 2022

Head Comment: DALES delivered a separate dissenting opinion.

Court: 6th Circuit Court (Published Opinions)

Attorneys 1: ARGUED and ON BRIEF: Marie E. Wicks, UNITED STATES DEPARTMENT OF JUSTICE, Washington, D.C., for Appellant.

Attorneys 2: ARGUED: Marcel C. Duhamel, VORYS, SATER, SEYMOUR AND PEASE LLP, Cleveland, Ohio, for Appellees.

Attorneys 3: ON BRIEF: Marcel C. Duhamel, VORYS, SATER, SEYMOUR AND PEASE LLP, Cleveland, Ohio, Joseph M. Romano, THE ROMANO LAW FIRM, Cleveland, Ohio, for Appellees.

Judge(s): CROOM, DALES, and STOUT, Bankruptcy Appellate Panel Judges

Court Appealed: United States Bankruptcy Court for the Northern District of Ohio at Cleveland

ALAN C. STOUT, Bankruptcy Appellate Panel Judge. In this consolidated appeal arising from two separate Chapter 13 cases, Debtors/Appellees (collectively “Debtors”) objected to priority unsecured claims that Creditor/Appellant United States of America on behalf of the Internal Revenue Service (“IRS”) filed based on Debtors’ failure to pay the “shared responsibility payment” (“SRP”) for failing to obtain health insurance as required under the “individual mandate” within the Patient Protection and Affordable Care Act of 2010 (the “ACA”).1 The bankruptcy court sustained Debtors’ objections in both cases, determining that the SRP is not “a tax on or measured by income or gross receipts” or “an excise tax on . . . a transaction” entitled to priority treatment under either 507(a)(8)(A) or (E).2 The IRS now appeals the bankruptcy court’s decision. For the reasons stated below, the bankruptcy court’s decision is REVERSED.

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