Hawkins v. Franchise Tax Board (In Re Hawkins)

MEMORANDUM DECISION

THOMAS E. CARLSON, Bankruptcy Judge.

In this action, the Internal Revenue Service (IRS) and the California Franchise Tax Board (FTB) seek to have unpaid income tax liabilities excepted from the discharge that Debtors Trip and Lisa Hawkins received in their chapter 11 case. The IRS and the FTB (collectively the Government) assert that the tax liabilities should not be discharged, because Debtors filed fraudulent returns, and because Debtors attempted to evade collection of tax. It is unnecessary to determine whether Trip Hawkins filed fraudulent returns, because I determine…