Cross Electric Company, Inc. v. United States of America, in Re Cross Electric Company, Inc., Debtor

DONALD RUSSELL, Circuit Judge:

This case presents the issue whether an account receivable, levied upon by the Internal Revenue Service (hereafter “IRS”) prior to the date on which a debtor files a petition for reorganization, is “property of the estate” within the meaning of 11 U.S.C. § 541 and thus subject to administration in the bankruptcy proceedings. We hold that, under the facts of this case, it is not. We accordingly reverse. 11 B.R. 998 (D.C. 1981).

I

In 1978,1979 and 1980, the IRS filed liens against Cross Electric (hereafter “Cross”) pursuant to 26 U.S.C. § 6323 for unpaid withholding…