Grothues v. Internal Revenue Service (In Re Grothues)

ORDER AFFIRMING, IN PART, AND REVERSING, IN PART, BANKRUPTCY COURT RULING

GARCIA, District Judge.

In this appeal, Debtors Paul A. Grothues and Marilyn Grothues challenge the bankruptcy court’s April 8, 1997 order granting the Internal Revenue Service’s (IRS) motion for summary judgment on their claim that they were discharged from liability for certain excise taxes of two corporations they operated. The Grothues argue that the bankruptcy court erred in ruling that Marilyn Grothues’s guilty plea to tax evasion established, as a matter of law, that her liability for the taxes was…