MIAMI—A debtor in a bankruptcy case is fighting back against an unusual maneuver that would allow trustees to boost their clawback authority in cases that involve unpaid federal taxes. According to an article by GlobeSt.com sister publication, ALM's Daily Business Review, construction executive Donald Kipnis, whose defunct Miller & Solomon General Contractors Inc. built the $150 million Downtown Dadeland project, filed a Chapter 11 bankruptcy petition in 2014 and later converted to Chapter 7. The IRS filed a proof of claim for more than $1.91 million.
Under Florida law, a bankruptcy trustee acting on behalf of unsecured creditors can typically look back four years to pursue collection.
But Barry Mukamal, the Chapter 7 trustee in Kipnis' case, wants to get hold of an asset he claims that Kipnis fraudulently transferred about 11 years ago during an IRS investigation. Mukamal alleges that in 2005, while the IRS was pursuing a nearly $1.05 million deficiency for two tax years, Kipnis transferred a luxury Brickell Avenue condominium in a premarital settlement agreement that the trustee contends was designed to evade creditors.
The transfer date puts the transaction outside Florida's four-year statute of limitation, but the trustee used an unusual maneuver—filing two adversary proceedings and stepping into the shoes of the IRS, which has powers beyond the time limits set by state law for bankruptcy proceedings, the article says.
“This is a bit of a game changer for trustees working to bring assets into an estate for the benefit of all creditors,” said Corali Lopez-Castro of Kozyak Tropin & Throckmorton in Miami, an attorney for Mukamal.
Neither side disputes the tax collection agency's extended reach, but they disagree on its span. Mukamal claims federal law and U.S. Supreme Court precedent allow a 10-year recovery period from the date of the IRS proof of claim. Kipnis says the window is much smaller—six years to pursue fraudulent transfers.
To read the full article, and to learn more about what Kipnis' attorney says, click here.
MIAMI—A debtor in a bankruptcy case is fighting back against an unusual maneuver that would allow trustees to boost their clawback authority in cases that involve unpaid federal taxes. According to an article by GlobeSt.com sister publication, ALM's Daily Business Review, construction executive Donald Kipnis, whose defunct Miller & Solomon General Contractors Inc. built the $150 million Downtown Dadeland project, filed a Chapter 11 bankruptcy petition in 2014 and later converted to Chapter 7. The IRS filed a proof of claim for more than $1.91 million.
Under Florida law, a bankruptcy trustee acting on behalf of unsecured creditors can typically look back four years to pursue collection.
But Barry Mukamal, the Chapter 7 trustee in Kipnis' case, wants to get hold of an asset he claims that Kipnis fraudulently transferred about 11 years ago during an IRS investigation. Mukamal alleges that in 2005, while the IRS was pursuing a nearly $1.05 million deficiency for two tax years, Kipnis transferred a luxury Brickell Avenue condominium in a premarital settlement agreement that the trustee contends was designed to evade creditors.
The transfer date puts the transaction outside Florida's four-year statute of limitation, but the trustee used an unusual maneuver—filing two adversary proceedings and stepping into the shoes of the IRS, which has powers beyond the time limits set by state law for bankruptcy proceedings, the article says.
“This is a bit of a game changer for trustees working to bring assets into an estate for the benefit of all creditors,” said Corali Lopez-Castro of
Neither side disputes the tax collection agency's extended reach, but they disagree on its span. Mukamal claims federal law and U.S. Supreme Court precedent allow a 10-year recovery period from the date of the IRS proof of claim. Kipnis says the window is much smaller—six years to pursue fraudulent transfers.
To read the full article, and to learn more about what Kipnis' attorney says, click here.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
