Yellin v. New York State Tax Commission

*197OPINION OF THE COURT

Mahoney, P. J.

Petitioner was the president and controlling stockholder of Kim Walker, Inc. (KIM), a New York corporation engaged in the manufacture of women’s clothing. On June 18,1969, KIM filed a petition for an arrangement pursuant to chapter 11 of the United States Bankruptcy Act. (US Code, tit 11.) The State Tax Commission then filed two claims designated Claim No. 1 and Claim No. 2, as a creditor in the bankruptcy proceedings. Both claims stemmed from KIM’s failure to pay income taxes withheld from its employees during various periods from 1967 through 1969. Claim…