City of Farrell v. Sharon Steel Corp.

OPINION OF THE COURT

GREENBERG, Circuit Judge.

I. INTRODUCTION

This appeal involves a controversy over City of Farrell municipal income taxes that *94Sharon Steel Corporation withheld from its employees’ wages. After withholding the amounts in dispute, Sharon Steel filed for protection under Chapter 11 of the Bankruptcy Code and thus did not remit the funds to the city. The City of Farrell subsequently initiated this action in the bankruptcy court to collect the unpaid taxes withheld. The bankruptcy court and the district court denied the City’s request for an order requiring Sharon Steel to remit…