Internal Revenue Service v. Trustee, Sapphire Steamship Lines, Inc. (In re Sapphire Steamship Lines, Inc.)

OPINION

SWEET, District Judge.

This is an appeal by the Internal Revenue Service (“IRS”) from a decision of the United States Bankruptcy Court for the Southern District of New York disallowing the IRS’s claim against the trustee (“Trustee”) of Sapphire Steamship Lines, Inc. (“Sapphire”) for penalties and interest for the non-payment of estimated corporate income taxes. The decision of the Bankruptcy Court is reversed, and the IRS’s claim for $21,572.05 for nonpayment of estimated income taxes and resulting penalties in tax years 1978,1979,1981, and 1982 is reinstated.

Prior Proceedings

Sapphire…