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IN RE DuCHARMES & CO.

No. 87-1715.

852 F.2d 194 (1988)

In re DuCHARMES & COMPANY, Debtor. DuCHARMES & COMPANY, INC., Plaintiff-Appellee, v. STATE OF MICHIGAN, et al., Defendants, United States of America, Defendant-Appellant.

United States Court of Appeals, Sixth Circuit.

Decided July 26, 1988.

Attorney(s) appearing for the Case

David H. Dickerson, Trial Atty., Tax Div., U.S. Dept. of Justice, Washington, D.C., Marlene Dayne, Asst. U.S. Atty., Flint, Mich., Michael L. Paup, Chief, Appellate Section, Tax Div., Dept. of Justice, Michael C. Durney, W.J. Hewett, G.D. Gray (argued), Washington, D.C., for defendants-appellants.

Dennis M. Haley, Jack K. Segal, Winegarden, Shedd, Haley Lindholm, Donald H. Robertson (argued), Flint, Mich., for plaintiff-appellee.

Before WELLFORD and NELSON, Circuit Judges, and PECK, Senior Circuit Judge.

PER CURIAM.

This is a Chapter 11 bankruptcy case in which the Internal Revenue Service contends that the debtor's plan of reorganization ought not be allowed to provide that tax payments be allocated first to the "trust fund" portion of the debtor's pre-petition tax liability. The IRS and the State of Michigan objected to the debtor's proposed reorganization plan, and the bankruptcy court sustained their objections. The district court subsequently reversed the bankruptcy...

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