United States Ex Rel. Internal Revenue Service v. Quaid (In Re Luster)

MEMORANDUM OPINION

KOCORAS, District Judge:

This is an appeal by the Internal Revenue Service from a decision of the Bankruptcy Court for the Northern District of Illinois to grant the trustee’s motion for summary judgment. The trustee has filed a cross-appeal. For the reasons set forth below, we will only entertain the Internal Revenue Service’s appeal. In doing so, we reverse the bankruptcy court’s decision.

BACKGROUND

On December 6, 1978, Melvin Luster (“Luster”) and Harold Friedman (“Friedman”) filed individual petitions for relief under the Bankruptcy Act of 1898 (the “Bankruptcy Act”).…