Miller v. United States

Petitioner William Miller appeals the district court’s affirmance of a bankruptcy court ruling which concluded that his Chapter 11 plan did not discharge his obligation to pay post-petition, pre-confirmation (“gap period”) interest on taxes owed to the Internal Revenue Service (“IRS”). 1 Miller contends that the IRS must be precluded from challenging the Chapter 11 plan, which he deems to have unambiguously indicated its intent to discharge any liability for gap period interest, on res *1002 judicata grounds. In the alternative, Miller urges the panel to construe the language of the Chapter 11 plan and the applicable provisions of the Bankruptcy Code as excepting from discharge the interest which accrues on a tax debt only when the government’s claim to that debt is unsecured.

We have jurisdiction over the district court’s order affirming the decision of the bankruptcy court pursuant to 28 U.S.C. §§ 158 (d), 1291. We now affirm.

I.

BACKGROUND

William Miller was the sole shareholder of Rosalie’s Restaurant Associates, an incorporated entity which failed to pay the requisite employment taxes for the first quarter of 1989. On October 3, 1989, Miller was assessed a trust fund…