In Re James Randall Smith and Bonnie Jo Smith, Debtors. James Randall Smith and Bonnie Jo Smith v. United States

ARNOLD, Circuit Judge.

This case arises under § 505(a) of the Bankruptcy Code of 1978, 11 U.S.C. § 505(a). Purporting to exercise jurisdiction under that section, the Bankruptcy Court decided that the debtors, James Randall Smith and Bonnie Jo Smith, did not owe a certain tax penalty. The Bankruptcy Court further held that the government was in possession of some $16,400.00 that rightfully belonged to the debtors. The District Court affirmed, and the government filed this appeal. The government now argues that the case is moot, and that the appeal should therefore be dismissed. For reasons…