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IN RE JAYLAW DRUG, INC.

Bankruptcy No. 79 Civ. 3579.

1 B.R. 512 (1979)

In re JAYLAW DRUG, INC., Debtor. JAYLAW DRUG, INC., Plaintiff, v. UNITED STATES INTERNAL REVENUE SERVICE and Empire National Bank, Defendants.

United States District Court, S.D. New York.

October 31, 1979.

Attorney(s) appearing for the Case

Harvey S. Barr, Spring Valley, N.Y., for plaintiff.

Robert B. Fiske, Jr., U.S. Atty. for the Southern District of New York, New York City, for defendant IRS; Stuart M. Bernstein, Asst. U.S. Atty., New York City, of counsel.

MEMORANDUM

IRVING BEN COOPER, District Judge.

Bankruptcy appeal involving post Chapter XI petition filing liability for interest and penalties.

The issue raised on this bankruptcy appeal is whether the Internal Revenue Service can levy and collect post Chapter XI petition penalties and interest on pre-Chapter XI tax liability from a confirmed debtor after the IRS has received payment on its proof of claim...

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