Internal Revenue Service v. Donahue (In Re Donahue)

Order

ANNE C. CONWAY, District Judge.

I. INTRODUCTION

In this bankruptcy appeal, Appellant Internal Revenue Service seeks reversal of the Bankruptcy Court’s determination that the Appellees-Debtors’ 2004 tax liability was dischargeable pursuant to 11 U.S.C. §§ 523(a)(1), 523(a)(7)(B), and 727(b). Upon carefully considering the Appellant’s brief and the record on appeal, this Court affirms the decision of the Bankruptcy Court.

II. BACKGROUND

On June 15, 2007, Appellees Mark and Karen Donahue 1 (collectively the “Debtors”) filed a petition for bankruptcy pursuant to Chapter 7 of the Bankruptcy Code.…