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IN RE GLK, INC.

No. 89-55196.

921 F.2d 967 (1990)

In re GLK, INC., Debtor. GLK, INC., dba MGAS; Marvin Givant Attorney Service; Spirit Legal Courier Messenger Service, Appellant, v. UNITED STATES of America, on behalf of INTERNAL REVENUE SERVICE, Appellee.

United States Court of Appeals, Ninth Circuit.

Resubmitted November 15, 1990.

Decided December 28, 1990.

Attorney(s) appearing for the Case

Mark Bernsley, Encino, Cal., for appellant.

Shirley D. Peterson, Asst. Atty. Gen., Tax Div., U.S. Dept. of Justice, Washington, D.C., for appellee.

Before WALLACE, THOMPSON and O'SCANNLAIN, Circuit Judges.

PER CURIAM:

The debtor, appellant GLK, Inc., filed a proposed plan of reorganization pursuant to Chapter 11 of the Bankruptcy Code. The plan contained a provision that payments by GLK to the Internal Revenue Service would be "applied first to any trust fund liability." The bankruptcy court found that these tax payments were involuntary, and for that reason it entered an order striking the allocation language from the plan. In doing so, the bankruptcy court relied...

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