Haynes Boone Partner Steve Pezanosky was quoted in a Bloomberg Law article after U.S. Supreme Court justices questioned the government’s position in United States v. Miller involving payments that transportation company All Resort Group Inc. made to cover two directors’ personal tax debts three years before it filed for bankruptcy.
If an insolvent company paid its owner’s personal loan obligations to a bank rather than a director’s personal tax debts to the IRS, it would clearly be a fraudulent transfer, Pezanosky told Bloomberg Law.
If the IRS prevails, “it’s going to get different treatment than a nongovernment creditor would get in a situation like this,” Pezanosky said.
To read the full article from Bloomberg Law, click here.
