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MATTER OF UNECO, INC.

No. 75-1201.

532 F.2d 1204 (1976)

In the Matter of UNECO, INC., Bankrupt. UNITED STATES of America, Appellant, v. UNECO, INC., Appellee.

United States Court of Appeals, Eighth Circuit.

Decided March 31, 1976.

Rehearing and Rehearing Denied April 21, 1976.

Attorney(s) appearing for the Case

Carolyn Just, Atty., Tax Div., Dept. of Justice, Washington, D. C., for appellant; Daniel E. Wherry, U.S. Atty., Paul Wayne Madgett, Asst. U.S. Atty., Omaha, Neb., Scott P. Crampton, Asst. Atty. Gen., Gilbert E. Andrews and Leonard J. Henzke, Jr., Attys., Washington, D.C., on brief.

Donald J. Buresh, Omaha, Neb., for appellee; Thomas D. Stalnaker, Omaha, Neb., on brief.

Before HEANEY, BRIGHT and WEBSTER, Circuit Judges.

Rehearing and Rehearing En Banc Denied April 21, 1976.

WEBSTER, Circuit Judge.

In the bankruptcy proceeding below, the referee allowed a federal claim for income taxes against the bankrupt, Uneco, Inc., in the amount of $191,745.08. The basis of the government's claim was the disallowance of certain bad debt deductions for 1968, 1969, and 1970 which produced an income tax deficiency for 1969. The Internal Revenue Service claimed that certain advances made...

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