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IN RE SMITH

No. 89-2936WM.

921 F.2d 136 (1990)

In re James Randall SMITH and Bonnie Jo Smith, Debtors. James Randall SMITH and Bonnie Jo Smith, Appellees, v. UNITED STATES of America, Appellant.

United States Court of Appeals, Eighth Circuit.

Decided October 19, 1990.

Attorney(s) appearing for the Case

Stephen B. Strayer, Liberty, Mo., for appellees.

Gary R. Allan, Murray S. Horwitz, Tax. Div., Dept. of Justice, Washington, D.C., for appellant.

Before ARNOLD and FAGG, Circuit Judges, and WATERS, District Judge.

ARNOLD, Circuit Judge.

This case arises under § 505(a) of the Bankruptcy Code of 1978, 11 U.S.C. § 505(a). Purporting to exercise jurisdiction under that section, the Bankruptcy Court decided that the debtors, James Randall Smith and Bonnie Jo Smith, did not owe a certain tax penalty. The Bankruptcy Court further held that the government was in possession of some $16,400.00 that rightfully belonged to the debtors. The District Court affirmed, and the government...

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