Internal Revenue Service v. Cousins (In Re Cousins)

STAHL, Circuit Judge.

The Internal Revenue Service (“IRS”) appeals a judgment holding that Wayne and Mary Cousins (“Debtors”), who had filed for bankruptcy protection under Chapter 12 of the Bankruptcy Code (“the Code”), were not liable after discharge for postpetition interest on prepetition, non-dischargeable tax liabilities. We reverse.

I

On November 14, 1990, Debtors filed a petition for bankruptcy protection under Chapter 12, which is available only to farmers. On March 14,1991, the IRS filed a Proof of Claim for $43,194.42 in assessed federal tax liabilities. Debtors then filed with the…