Stipulation That Resolves Entire Amount Must Reflect Intent of Parties

The Ninth Circuit recently affirmed a lower courts' rulings that a stipulation between the IRS and a bankruptcy trustee, which allowed the IRS's priority tax claim, did not prevent the IRS from collecting nondischargeable tax debt above the agreed amount in that stipulation.

6 minute read July 01, 2022 at 12:07 AM
By
Francis J. Lawall and Kenneth A. Listwak
Stipulation That Resolves Entire Amount Must Reflect Intent of Parties

It arguably goes without saying that when entering into a stipulation or any settlement in a bankruptcy proceeding that purports to resolve the entire amount and treatment of a claim, the terms of such agreement must fully and clearly reflect the intent of the parties.

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