IN RE STANMOCK, INC.

BAP No. SC-87-1396 VAsR, Bankruptcy No. 83-001100-P11.

103 B.R. 228 (1989)

In re STANMOCK, INC., dba Tri-Cities Auto Painting & Body Repair and Tri-Cities Paint and Body, Debtor. UNITED STATES of America, on Behalf of the INTERNAL REVENUE SERVICE, Appellant, v. STANMOCK, INC. and Gerald Moch, Appellees.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Decided August 29, 1989.

Concurring Opinion September 6, 1989.


Attorney(s) appearing for the Case

Thomas Carlucci, Trial Atty., Tax Div., U.S. Dept. of Justice, Washington, D.C., for appellant.

David M. Korrey, Law Offices of David M. Korrey, San Diego, Cal., for appellees.

Before VOLINN, ASHLAND and RUSSELL, Bankruptcy Judges.


OPINION

VOLINN, Bankruptcy Judge:

The United States has appealed an order of the bankruptcy court that allows the debtor to direct how the Internal Revenue Service (IRS) must allocate its Chapter 11 plan tax payments. The issue presented is whether a bankruptcy court can confirm a Chapter 11 plan, specifying that federal tax payments to the IRS must be applied to satisfy the trust fund portion of delinquent federal taxes prior to the nontrust fund portion...

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