In Re Robert H. Isom Mary E. Isom, Debtors. Robert H. Isom Mary E. Isom v. United States of America, Internal Revenue Service

Good Law
901 F.2d 744·1990 WL 41702·67 A.F.T.R.2d (RIA) 314·1990 U.S. App. LEXIS 5487
United States Court of Appeals for the Ninth CircuitApril 13, 199089-35032California913 words

Opinion

Opinion

Wright, J.

The question presented is whether the I.R.S. must release tax liens, pursuant to 26 U.S.C. § 6325 (a)(1), when the underlying tax debt has been discharged in bankruptcy-

BACKGROUND

There are no material facts in dispute. Robert and Mary Isom filed for chapter 7 bankruptcy in March 1987. At that time, the I.R.S. had valid tax liens against the debtors’ property for unpaid taxes from 1974 through 1982. The taxes were dis-chargeable under 11 U.S.C. §§ 523 (a)(1), 507(a)(7), and 727.

The debtors sought an order in the bankruptcy proceeding to compel the I.R.S. to release the liens under 26 U.S.C. § 6325 (a)(1). The bankruptcy court granted that relief by summary judgment in favor of the debtors. The Bankruptcy Appellate Panel reversed with one judge dissenting. In re Isom, 95 B.R. 148 (9th Cir. BAP 1988). We have jurisdiction under 28 U.S.C. § 158 (d), and we affirm the judgment of the Bankruptcy Appellate Panel.

ANALYSIS

We review de novo the appellate panel’s decision. Romley v. Sun Nat’l Bank (In Re Two S. Corp.), 875 F.2d 240 , 242 (9th Cir.1989). We review de novo the bankruptcy court’s decision granting summary judgment. Id.

The Internal Revenue Code, at 26 U.S.C. § 6325…

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