United States Eighth Circuit

In the IRS's appeal from a bankruptcy court's order confirming debtors' Chapter 12 reorganization plan, the order is affirmed where: 1) a Chapter 12 debtor may treat postpetition income taxes imposed on the debtor's income earned during the pendency of the case as administrative expenses under 11 U.S.C. section 503; 2) debtors' sale of their slaughter hogs in 2004 constituted the sale of a "farm asset used in the debtor's farming operation" under section 1222(a)(2)(A); and 3) the "marginal method" was the correct method to determine the allocation of taxes between priority and non-priority claims under section 1222(a)(2)(A).

Appellate Information

• Decided 09/16/2009
• Published 09/16/2009

Judges

• SMITH, Circuit Judge., Before RILEY, SMITH, and COLLOTON, Circuit Judges.

Court

• United States Eighth Circuit

Counsel

• For Appellant:
  
• Patrick J. Urda, D.O.J., Tax Division, argued, Washington, DC, Patrick J. Urda and Bruce R. Ellisen, D.O.J., Washington, DC, Matt M. Dummermuth, USA, Northern District of Iowa, and Joe W. Stecher, USA, District of Nebraska, on the brief, for appellants.


• For Appellees:
  
• Joseph A. Peiffer, argued, Cedar Rapids, IA, Joseph A. Peiffer, Cedar Rapids, IA, James R. Nisley, North Platte, NE, on the brief, for appellees.