In re Howard Juntoff
- Summarized by Benjamin Fischer , U.S. Bankruptcy Court, District of New Jersey
- 3 months 4 weeks ago
- Case Type:
- Consumer
- Case Status:
- Affirmed
- Citation:
- 22-3312 (6th Circuit, Jul 31,2023) Published
- Tag(s):
-
- Ruling:
- The Sixth Circuit affirmed, ruling that the “Shared Responsibility Payment” for individuals who did not purchase qualifying individual health insurance plans as required by the Affordable Care Act is a “tax . . . measured by income” under the Bankruptcy Code, entitled to priority status under section 507(a)(8)(A).
- Procedural context:
- Howard Juntoff did not buy the minimum health insurance and failed to make his Shared Responsibility Payment as required by the Affordable Care Act. The IRS tried to collect the payment in bankruptcy, arguing that its claim was entitled to priority status under section 507(a)(8)(A). as a claim by a “governmental unit” for any “tax on or measured by income.” 11 U.S.C. § 507(a)(8)(A). The bankruptcy court for the Northern District of Ohio denied the request, reasoning that the Shared Responsibility Payment was not a “tax on or measured by income.” The Bankruptcy Appellate Panel reversed,
and Juntoff appealed.
- Facts:
- The Affordable Care Act, created a “Shared Responsibility Payment” for individuals who did not purchase qualifying individual health insurance plans, Howard Juntoff not to buy the minimum health insurance and failed to make his Shared Responsibility Payment. After he declared bankruptcy, the IRS tried to collect the payment.
- Judge(s):
- Sutton, Davis, and Mathis
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