Second Circuit Upholds Dismissal of Tax Refund Claim over Debt Cancellation Timing

Salta v. United States, No. 24-2700-cv, 2025 BL 357998 (2d Cir. Oct. 06, 2025), Court Opinion

On October 6, 2025, the U.S. Court of Appeals for the Second Circuit affirmed the Southern District of New York’s summary judgment for the United States in Salta v. United States.

The court held that Romeo Salta, Jr. and Phyllis Polega could not recover $113,087 in taxes paid on cancellation-of-indebtedness income from a 2015 mortgage discharge.

The app…