Editor's Note :

Editor's Note :

In previous years, the Court released orders the morning after the Court’s “Long Conference.” It has not done so this year. Beginning last Term, the Court consistently considered petitions at least two times before granting certiorari. To the extent that practice continues -- and there is no affirmative evidence the Court intends to drop it -- so we are again doubtful that certiorari will be granted in any cases today.

Hall v. United States

Docket No. Op. Below Argument Opinion Vote Author Term
10-875 9th Cir. Nov 29, 2011
Tr.Aud.
May 14, 2012 5-4 Sotomayor OT 2011

Holding: The federal income tax liability resulting from petitioners’ post-petition farm sale is not “incurred by the estate” under Section 503(b) of the Bankruptcy Code and thus is neither collectible nor dischargeable in the Chapter 12 plan.

Plain English Summary: At issue was whether farmers who sell their farm while in bankruptcy have to pay capital gains tax to the IRS. The farmers argued that they could sell the farm and give the proceeds to their other creditors. However, the Court agreed with the IRS that the IRS must be paid before the other creditors.

Judgment: Affirmed, 5-4, in an opinion by Justice Sotomayor on May 14, 2012. Justice Breyer filed a dissenting opinion in which Justices Kennedy, Ginsburg and Kagan joined.

SCOTUSblog Coverage

Briefs and Documents

Merits Briefs for the Petitioners

Amicus Briefs in Support of the Petitioner

Merits Briefs for the Respondent

Certiorari-stage documents

 
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