United States (Internal Revenue Service) v. Kogan (In Re Herreras)

SNYDER, District Judge.

I. Introduction

This matter is an appeal from an order of the bankruptcy court. The question presented is whether proceeds, which are held by the trustee, of the sale of an attorney’s pre-petition work in progress, are proceeds of “property” subject to a federal tax lien under I.R.C. § 6321. The debtor attorney surrendered the assets of his law practice, including the work in progress, to the trustee after filing his Chapter 7 petition. Subsequently, the debtor repurchased the law practice from the trustee pursuant to a settlement agreement. The Internal Revenue Service…