United States v. Equipment Acquisition Resources, Inc.

Memorandum Opinion and Order

EDMOND E. CHANG, District Judge.

Equipment Acquisition Resources went bankrupt and eventually filed, in an adversary proceeding in bankruptcy, a first amended complaint seeking recovery of money that the company made to cover tax liabilities of its shareholders. The United States of America, on behalf of the Internal Revenue Service, moved to dismiss one of the counts (Count 4) that sought recovery of the money, arguing that sovereign immunity barred the claim. Fed.R.Civ.P. 12(b)(1).1 R. 1. The bankruptcy court denied the Government’s motion to dismiss. R. 12-2. For…