The U.S. Supreme Court ruled 8-1 that a bankruptcy trustee cannot reclaim federal taxes paid by a debtor prior to filing for bankruptcy. This decision stems from the case United States v. Miller (23-824), where the Court found that the United States is entitled to immunity from such clawbacks. The ruling clarifies that the bankruptcy code's waiver of sovereign immunity applies only in specific circumstances, limiting the ability of bankruptcy trustees to reverse tax payments made more than two years before a bankruptcy filing. The case involved a transportation company that made payments before declaring bankruptcy, and the Court's decision effectively upholds the IRS's position against the bankruptcy trustee's claims for $145,000 in federal taxes.