Supreme Court Sides With IRS in Bankruptcy Dispute

The high court overturned the Tenth Circuit’s ruling that the IRS was not entitled to keep an insolvent company’s payment that may be tainted by fraud.

The IRS building in Washington on March 10, 2025. Madalina Vasiliu/The Epoch Times

The U.S. Supreme Court ruled on March 26 that state and federal law do not allow a bankruptcy trustee to take back a payment made to the IRS that may have been fraudulent.

Justice Ketanji Brown Jackson wrote the 8–1 majority opinion in United States v. Miller. Justice Neil Gorsuch issued a dissenting opinion.