2. AVOIDING POWERS -

2.1 Fraudulent Transfers -

2.1.a Imposition and payment of a tax penalty is not a fraudulent transfer. While insolvent, the debtor incurred and paid tax penalties before bankruptcy. A transfer of property of the debtor while the debtor was insolvent for less than reasonably equivalent value is avoidable as a constructively fraudulent transfer. By referring to an exchange for value and defining when a transfer is made as when it takes effect between the parties, the UFTA does not contemplate involuntary obligations such as tax penalties. Therefore, the UFTA does not apply to a tax penalty. Cook v. U.S. (In re Yahweh Center, Inc.), 27 F.4th 960(4th Cir. 2022).