IRS Gets 90 Days When Clock Stops

In re Montgomery, (Bkrtcy.D.Kan.) (Judge Somers Case No. 10-20869) February 24, 2011: Claims – Taxing authority was entitled to only one 90-day enlargement on top of all suspension periods.

The suspension paragraph of the tax priority provision, in requiring suspension of the three-year “lookback” period for “any time during which an automatic stay was in effect in a prior case under this title or during which collection was precluded by the existence of one or more confirmed plans under this title, plus 90 days,” did not require the addition of multiple 90-day periods for each period in which a stay or confirmed plan prevented a taxing authority from collecting taxes, but the addition of only one 90-day period to the sum total of any such suspension periods. The phrase “plus 90 days,” being separated from what preceded it by a comma, had to be construed as standing independent from what preceded it.

Summary courtesy of West Highlights.