CASE SUMMARY $20\mathrm{.}2$ Ellison v$.$ Comm'r of Internal Revenue Service, $385$ B$.$R$.158($S$.$D$.$ W$.$ Va$.2008)$

AUTOMATIC STAY

Ellison ran a small company, and both he and his company filed for bankruptcy in $1994.$ The court issued an automatic stay to creditors. A month later, the IRS contacted Ellison about unpaid taxes from $1993.$ Although Ellison consented to the tax being assessed, the IRS continued to pursue payment of the back taxes even after the bankruptcy petition was filed. Ellison filed suit against the IRS for the violation of her automatic stay rights under the Bankruptcy Code.

CASE QUESTIONS

Will Ellison not have to pay these taxes, or can they be discharged?

Does the IRS have any defense to pursuing the debt during the automatic stay period?

If Ellison wins, what does that say about the power of an automatic stay?