OBJECTION TO CONFIRMATION OF CHAPTER 11 PLAN – Page 1 

LEIGHA SIMONTON

UNITED STATES ATTORNEY 

Dawn Whalen Theiss

Assistant United States Attorney

Texas Bar No. 24051755

1100 Commerce St., Ste. 300

Dallas, Texas 75242

dawn.theiss@usdoj.gov

Telephone: 214-659-8600 

Facsimile: 214-659-8807 

Attorneys for

United States of America

Internal Revenue Service

IN THE UNITED STATES BANKRUPTCY COURT

FOR THE NORTHERN DISTRICT OF TEXAS

DALLAS DIVISION 

 

In re:

HOUSE OF DEAR HAIR SALON, LLC, 

 Debtor.

CASE NO. 24−30068−SGJ-11

CHAPTER 11

OBJECTION TO CONFIRMATION OF AMENDED CHAPTER 11 PLAN

 The United States of America, on behalf of the Internal Revenue Service (IRS), objects 

to confirmation of the Debtor’s First Amended Plan of Reorganization Under Subchapter V of 

Chapter 11, filed by Debtor Hispanic Family Christian Network, Inc. (the Plan) (Doc. 57), 

pursuant to 11 U.S.C. § 1129, and Federal Rule of Bankruptcy Procedure 3020. 

IRS PROOF OF CLAIM AND DELINQUENT RETURNS

The IRS has filed a proof of claim (Claim 6-1). The claim in the Hair Salon case is an 

unsecured priority claim in the amount of $1,215.04. Id. This claim includes estimates for 

several periods because the Debtor has failed to file certain returns when due. These include, 

Form 941 returns for all four quarters of 2021 and the first quarter of 2024 (Employers Quarterly 

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OBJECTION TO CONFIRMATION OF CHAPTER 11 PLAN – Page 2

Federal Tax Return), and Form 940 return for the 2021 tax year (Employers Annual Federal 

Unemployment – FUTA). The IRS Claim in the House of Dear case is an unsecured priority 

claim of $5,000. (Claim 4-1). This claim includes estimates for several periods because the 

Debtor has failed to file certain returns when due. These include Form 941 returns 2020-2023

(Employers Quarterly Federal Tax Return), and Form 940 return for the 2020-2023 tax years

(Employers Annual Federal Unemployment – FUTA). Because the Debtor has not filed the tax 

returns for these periods, the IRS estimated the claims for each applicable year or period. 

THE PLAN IS GENERALLY UNCONFIRMABLE BASED ON THE 

DEBTOR’S FAILURE TO FILE TAX RETURNS

Unless and until the delinquent tax returns are filed, the Plan can not be confirmed. 

11 U.S.C. § 1106(a)(6) (“A trustee shall . . . for any year for which the debtor has not filed a tax 

return required by law, furnish, without personal liability, such information as may be required 

by the governmental unit with which such tax return was to be filed . . .”); id. § 1184 (requiring 

small business debtors under Subchapter V to comply with the requirements of section 

1106(a)(6) of the Bankruptcy Code); id. § 1129(a)(2) (chapter 11 plan cannot be confirmed 

unless “[t]he proponent complies with the applicable provisions of this title.”); id. § 1191(a) 

(applying Bankruptcy Code section 1129(a)(2)’s confirmation requirement to cases under 

Subchapter V). To be clear, before the amount of the IRS’s claim can even be determined with 

certainty (or the feasibility of the Plan even assessed), the Debtor must file the delinquent federal 

returns. The Service reserves the right to oppose confirmation on additional grounds (including 

feasibility) once the returns are provided.

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OBJECTION TO CONFIRMATION OF CHAPTER 11 PLAN – Page 3 

THE PLAN VIOLATES 11 U.S.C. § 1129(a)(11)

The United States objects that confirmation of this Plan is likely to be followed by 

liquidation or a need for further financial reorganization in violation of 11 U.S.C. § 1129(a)(11). 

Until the Debtor has filed the tax returns referenced above, the priority and unsecured claims 

cannot be ascertained. Therefore, the Debtor cannot show the Plan is feasible without 

establishing the amount of the priority and unsecured claims held by the IRS. 

CONCLUSION

For the reasons stated, the Amended Plan does not comply with the requirements of the 

Bankruptcy Code. The United States respectfully requests that this Court deny confirmation of 

the Plan, and grant to the United States such relief to which it may be entitled.

DATED August 12, 2024

 Respectfully submitted,

 LEIGHA SIMONTON

UNITED STATES ATTORNEY 

 

 

 /s/ Dawn Whalen Theiss 

Dawn Whalen Theiss

Assistant United States Attorney

Texas Bar No. 24051755

1100 Commerce Street, Third Floor

Dallas, Texas 75242-1699

Telephone: 214-659-8628

Facsimile: 214-659-8807

dawn.theiss@usdoj.gov

 Attorneys for Internal Revenue Service

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OBJECTION TO CONFIRMATION OF CHAPTER 11 PLAN – Page 4 

Certificate of Service

On August 12, 2024, I electronically submitted the foregoing document with the clerk of 

court for the U.S. Bankruptcy Court, Northern District of Texas, using the electronic case filing 

system of the court. I hereby certify that I have served all parties electronically or by another 

manner authorized by Federal Rule of Civil Procedure 5(b)(2). 

 

 /s/ Dawn Whalen Theiss 

Dawn Whalen Theiss

 Assistant United States Attorney

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