IRS: Erickson plan approval should be denied for failure to pay taxes

By Caroline Salls

Pittsburgh, March 14 – Erickson Inc.’s plan of reorganization drew an objection Monday by the Internal Revenue Service, which argues that the plan cannot be confirmed because the company has not filed tax returns and owes money to the agency, according to a filing with the U.S. Bankruptcy Court for the Northern District of Texas.

Specifically, the IRS said it has filed $1.51 million in claims against the Erickson debtors, and the company failed to file several tax forms between the 2011 and 2016 tax years.

According to the objection, the Bankruptcy Code specifies that a court may confirm a plan only if the proponent of the plan complies with the applicable provisions, and Erickson’s failure to file tax returns and pay the taxes due violates the Bankruptcy Code.

The plan confirmation hearing is scheduled for March 21.

Erickson, an aircraft manufacturer based in Portland, Ore, filed for bankruptcy on Nov. 8. The Chapter 11 case number is 16-34393.

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