Menu    1 ABR 356 

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF ALASKA



In re: )
)
DONALD L. HYMES and ) Case No. F90-00607
RITA M. HYMES, ) Chapter 13
)
Debtors.                 )
____________________________________)


ORDER DISMISSING CASE

            The court conducted a hearing regarding pending dismissal motions and objections to the claim of the Internal Revenue Service in Fairbanks on January 28, 1991. The debtors appeared on behalf of themselves. Robert Crowther appeared on behalf of the I.R.S.

            The debtor Donald L. Hymes has had a running dispute with the Internal Revenue Service for many years. He has failed to file tax returns and pay income taxes since at least 1980. Tax liens have been filed. Despite owing in excess of $40,000 in tax, interest and penalty, he failed to list the I.R.S. as a creditor. Although he disputes the I.R.S. claim, his dispute is not grounds for failing to list his largest single creditor. Hymes committed perjury by failing to list the I.R.S. as a creditor. This alone is grounds for dismissal.

           Hyme's objections to the I.R.S.'s claim is a masterpiece of tortured logic. Using Hyme's rationale, no citizen of the United States would ever pay income tax. The certified records submitted by the I.R.S. amply justify their claim. If Hymes had a   TOP      1 ABR 357  legitimate grievance, he should have submitted copies of his income tax returns together with his canceled payment checks, evidence he has failed to provide.

            There are a multitude of defects with Hyme's pleadings and plan. Hymes has misstated his income; he has failed to make any post-petition payments required by ll U.S.C. § 1326(a) (1). Both debtors have failed to cooperate with the trustee in revealing their income and expenses in violation of ll U.S.C. § 521(3) and (4). The debtors fraudulently transferred their home pre-petition and have used a misleading account to avoid levy by the I.R.S. in violation of 11 U.S.C. § 544 and Alaska law regarding fraudulent conveyances. The plan is unfeasible, as according to the debtors, they have no income to pay under the plan. The plan does not provide for payment of future taxes as they accrue nor for the payment of any pre-petition tax obligations. The debtors have failed to request a confirmation hearing, resulting in an unreasonable delay to creditors.

            The debtor's Chapter 13 plan abuses both the spirit and purpose of Chapter 13. Through his plan, the debtor seeks a discharge of federal tax liabilities which he never reported and which he never intended to pay. Moreover, we find no persuasion in debtor's challenge to the claim as a tax protestor. It is well-settled that these challenges are without merit. See United States v. May, 555 F.Supp. 1008 (E.D.Mich. 1983); Beard v. Commissioner, 82 T.C. 766 (1984), aff'd, 793 F.2d 139 (6th Cir. 1986) and Perkins v. Commissioner, 46 T.C. Memo 1046, aff'd, 746 F.2d 1187 (6th Cir. 1984) (footnotes omitted).
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    Matter of Hazel, 68 B.R. 287, 289 (Bankr. E.D.Mich. 1986).

            In accordance with 11 U.S.C. § 1307 this case is dismissed with prejudice for a period of 180 days for cause, to wit:

            (1)    Filing the petition in bad faith;

           (2)    Perjury in the filing of the petition;

            (3)    Failure to cooperate with the trustee;

           (4)    Unreasonable delay prejudicial to creditors; and

            (5)    Failure to commence making timely payments under 11 U.S.C. § 1326.

           Let Judgment be entered accordingly.

           DATED:    January 31, 1991.


                  DONALD MacDonald IV
                  United States Bankruptcy Judge


    Serve: Donald Hymes & Rita Hymes, Debtors
    R. Crowther, Esq.
    B. Franklin, Esq.
    B. Furman, Trustee
    J. George, Chief Deputy
    P. Taylor, Closing Clerk