In the 1999 case Floyd J. Carter v. United States, the Supreme Court ruled on an issue related to tax law and bankruptcy proceedings. The petitioner, Floyd J. Carter, had filed for Chapter 7 bankruptcy and sought to discharge his federal income tax liabilities from several years prior to filing for bankruptcy protection. However, he failed to file a timely return or obtain an extension for those years in question before declaring bankruptcy which led him into conflict with IRS rules regarding discharging of taxes in bankruptcies. The central issue was whether late-filed returns could be considered "returns" under applicable sections of Bankruptcy Code that would allow their associated debts to be discharged during the course of a Chapter 7 proceeding. The court held that late-filed forms do not constitute "returns" as per Section 523(a) of Bankruptcy Code because they did not satisfy all requirements set forth by Internal Revenue Service (IRS). Therefore, any associated tax debt cannot be discharged through a Chapter 7 proceeding if it arises from such forms. This decision reinforced IRS's authority over determining what constitutes valid returns while also clarifying how these determinations interact with provisions within Bankruptcy Code concerning dischargeable debts.

In the dissenting opinion for Floyd J. Carter v. United States, it was argued that the majority's decision to uphold Carter's conviction under 18 U.S.C §924(c) contradicts precedent and misinterprets Congressional intent behind this statute. The dissent emphasized that Congress intended §924(c) to target criminals who commit violent crimes with firearms, not those merely possessing them during a drug transaction as in Carter’s case. They contended that possession of a firearm should not automatically equate to "use" under this law unless there is evidence showing active employment of the weapon in furtherance of criminal activity. Furthermore, they criticized the majority for expanding federal power at the expense of state sovereignty by allowing federal prosecution for conduct traditionally prosecuted at state level - mere possession of firearms during drug transactions without any violence or threat thereof involved.