World Scope Publishers, Inc. v. United States

MARSHALL, Circuit Judge:

This is an appeal from an order of the District Court for the Eastern District of New York denying debtor-taxpayer’s motion seeking, inter alia, to recover money paid to the District Director of Internal Revenue that was applied toward the payment of tax penalties owed by the debtor-taxpayer prior to filing a petition under Chapter XI of the Bankruptcy Act. We affirm.

During the pendency of the Chapter XI proceedings the District Director filed a claim against the debtor-taxpayer for $75,521.15, which included taxes, interest and penalties then owing. Two stipulations…