Wernimont v. Iowa Department of Revenue (In Re Wernimont)

WILLIAM L. EDMONDS, Chief Judge.

The matter before the court is the Wemi-monts’ motion for summary judgment. The Wernimonts claim that their income tax liability to the Iowa Department of Revenue and Finance (IDOR) for the 1985 tax year is dischargeable and that they may avoid the IDOR’s tax hens. Hearing was held November 8, 1994, in Sioux City, Iowa. This is a core proceeding pursuant to 28 U.S.C. § 157(b)(2)(I) and (K).

The court bases its decision upon the following facts which are undisputed. The Wernimonts filed a Chapter 7 bankruptcy petition on December 9, 1993. In tax year 1985, the…