Kovacs v. United States (In Re Kovacs)

DECISION

JAMES E. SHAPIRO, Bankruptcy Judge.

This adversary proceeding is a classic illustration of how a mistake by both sides on the issue of dischargeability of certain tax debts and which issue has been fueled by extensive overlawyering can turn a mole hill into a huge mountain.

This is a core proceeding under 28 U.S.C. §§ 157(b)(2)(A) and (0).

FACTUAL BACKGROUND

The key events involved occurred over a span of the following three time periods:

1. Prior to the commencement of this adversary proceeding (March 2002 through August 2005) (Phase I);

2. From commencement of adversary proceeding to…