Wilson
Wilson v. United States (In re Wilson)
Opinion
Lead Opinion
Jaroslovsky, J.
Memorandum on Motion for Summary Judgment
Chapter 7 debtor Kirk Wilson obtained an extension of his time to file his 2008 tax return until October 15, 2009, but failed to file the return until 2011. Wilson filed his bankruptcy petition on July 24, 2012. The Chapter 7 trustee recovered significant assets and was able to pay Wilson’s 2008 income taxes in full, but not the penalties. The issue in this adversary proceeding is whether the penalties associated with the *637 2008 income taxes have been discharged. Wilson has moved for summary judgment.
26 U.S.C. § 6651 (a)(1) provides a penalty for failure to file a tax return; § 6651(a)(2) provides a penalty for failure to pay a tax. In this case, the IRS agrees that any penalties imposed by § 6651(a)(2) have been discharged. The only penalties in dispute here are on account of § 6651(a)(1).
This dispute is governed by § 523(a)(7)(b), which provides that a tax penalty is discharged if it was “imposed with respect to a transaction or event” that occurred more than three years before the bankruptcy petition. Wilson argues that the penalties were imposed with respect to his 2008 tax liability, due April 15, 2009, and therefore were more…