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IN RE DEFENSE SERVICES, INC.

Bankruptcy Nos. 89-00964-BKC-TCB, 89-00965-BKC-TCB, Adv. No. 89-0082-BKC-TCB-A.

104 B.R. 481 (1989)

In re DEFENSE SERVICES, INC., and Defense Support Group, Ltd., Debtors. DEFENSE SERVICES, INC., and Defense Support Group, Ltd., Plaintiffs, v. UNITED STATES of America, DEPARTMENT OF THE TREASURY, INTERNAL REVENUE SERVICE; First National Bank and Trust Company of the Treasure Coast, Defendants.

United States Bankruptcy Court, S.D. Florida.

July 10, 1989.

Attorney(s) appearing for the Case

Ackerman, Bakst, Lauer, P.A., Leslie Cloyd, West Palm Beach, Fla., for plaintiffs.

Jose F. DeLeon, U.S. Dept. of Justice, Tax Div., Washington, D.C., for defendants.

Michael N. Jonas, Cohen, Scherer, Cohn & Silverman, North Palm Beach, Fla., for First Nat. Bank & Trust Co. of Treasure Coast.

MEMORANDUM DECISION

THOMAS C. BRITTON, Chief Judge.

The plaintiff debtors, who filed simultaneously for chapter 11 bankruptcy relief on March 2, 1989, have jointly sued the Government seeking (a) avoidance, as a preference under 11 U.S.C. § 547, of an IRS prepetition "Request for Offset," and (b) a determination under § 505(a)(1) of the amount of the tax liability, if any, of each debtor.

The Government has answered (CP 4) that Defense...

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