Opinion · Court of Appeals for the Eighth Circuit

A to Z Welding & Mfg. Co. Inc. v. United States of America, Internal Revenue Service

A to Z Welding & Mfg. Co. v. United States, Internal Revenue Serv., 803 F.2d 932 (8th Cir. 1986)

Type
Opinion
Court
Court of Appeals for the Eighth Circuit
Jurisdiction
Federal
Date
1986-10-01
Topic
bankruptcy

PER CURIAM. The issue in this appeal is whether a bankruptcy court has the power to enjoin the Internal Revenue Service (IRS) from collecting a tax assessed against certain officers and shareholders of A to Z Welding & Mfg. Co., Inc. (A to Z), a bankrupt corporation, pursuant to 26 U.S.C. § 6672. BACKGROUND A to Z filed a petition for reorganization under Chapter 11 of the Bankruptcy Code on August 3, 1984.

Citator

UpLaw has not yet analyzed A to Z Welding & Mfg. Co. Inc. v. United States of America, Internal Revenue Service. The absence of a flag is not a finding that it is good law.

Cited by
26 opinions
A TO Z WELDING MFG. CO. v. UNITED STATES,803 F.2d 932(8th Cir. 1986)
A TO Z WELDING MFG. CO., INC., APPELLANT, v. UNITED STATES OF AMERICA,
INTERNAL REVENUE SERVICE, APPELLEE.
No. 86-1079.
United States Court of Appeals, Eighth Circuit.
Submitted September 12, 1986.
Decided October 1, 1986.
Page 933
A. Doug Chavis, Little Rock, Ark., Paul M. Predmore, Wynette J. Hewett Gary Gray, Washington, D.C., for U.S.
Appeal from the United States District Court for the Eastern District of Arkansas.
Before HEANEY and BOWMAN, Circuit Judges, and REGAN,fn*United States Senior District Judge.
PER CURIAM.
[1] The issue in this appeal is whether a bankruptcy court has the power to enjoin the Internal Revenue Service (IRS) from collecting a tax assessed against certain officers and shareholders of A to Z Welding Mfg. Co., Inc. (A to Z), a bankrupt corporation, pursuant to26 U.S.C. § 6672.

[2]BACKGROUND

[3] A to Z filed a petition for reorganization under Chapter 11 of the Bankruptcy Code on August 3, 1984. Thereafter, the IRS assessed a penalty against certain officers and shareholders of the debtor corporation requiring them to pay taxes withheld from its employee's wages pursuant to26 U.S.C. § 6672. A to Z filed a complaint against the IRS seeking to enjoin collection of the assessed penalties. The bankruptcy court held that it was barred by the anti-injunction statute,26 U.S.C. § 7421(a), from issuing an injunction. Thus, the bankruptcy court dissolved a preliminary injunction prohibiting the IRS from taking any action to collect the tax liabilities and dismissed A to Z's complaint.

[4] The district court58 B.R. 1138, affirmed the bankruptcy court's decision, and this appeal followed. For the reasons set forth below, we affirm.

[5]DISCUSSION

[6] A to Z argues that the "anti-injunction" statute is not relevant to the present case inasmuch as Congress, in enacting the bankruptcy code, has evidenced an intention to enact a complete scheme overriding the anti-injunction act. In support of its argument, A to Z relies onBostwick v. United States,521 F.2d 741(8th Cir. 1975).Bostwickis inapposite to the case at hand. The injunction upheld inBostwickwas against collection of taxes assessed against thedebtorsin bankruptcy.521 F.2d at 746. Thus, if a tax were assessed against the debtor,Bostwickmay permit the bankruptcy court to override the anti-injunction act. Yet, this case involves an attempt to prohibit the IRS from collecting a tax assessed against officers and shareholders in their personal capacity. The anti-injunction act prohibits such a suit.Kelly v. Lethert,362 F.2d 629(8th Cir. 1966).

[7] Affirmed.Page 934
  1. John K. Regan, United States Senior District Judge for the Eastern District of Missouri, sitting by designation. ↩