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IN RE SMITH

BAP No. WW-92-1985-BAR, Bankruptcy No. A89-09154.

158 B.R. 813 (1993)

In re Richard D. SMITH, Debtor. UNITED STATES of America, Appellant, v. Richard D. SMITH, Appellee.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Decided September 28, 1993.

Attorney(s) appearing for the Case

John S. Woodburne, Bellevue, WA, for appellant.

W. Carl Hankla, Washington, DC, for appellee.

Before: BOWIE, ASHLAND, and RUSSELL, Bankruptcy Judges.

OPINION

BOWIE, Bankruptcy Judge:

The Bankruptcy Court entered an order requiring the Washington State Lottery Commission to pay all gross winnings to the bankruptcy trustee, without withholding any of the proceeds. The United States, on behalf of the Internal Revenue Service, appeals. WE REVERSE.

I. FACTS

Pre-petition, the debtor won the Washington State Lottery, entitling him to an annual payment of $50,000, before taxes. At the time of...

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