United States v. Donahue Industries, Inc., Dba Donahue Printing Company, and Rainier National Bank

I concur in parts I and II of the majority opinion. However, because I do not think Rainier should be penalized for litigating this case, I dissent from part III of the majority opinion.

As the majority explains, supra at 1331, a penalty should not be imposed “in cases where [a] bona fide dispute exists concerning the ... legal effectiveness of the levy.” 26 C.F.R. § 301.6332-l(b)(2) (1989). Elaborating on this standard, the majority adopts the Second Circuit’s conclusion in United States v. Sterling Bank & Trust Co., 494 F.2d 919 (2d Cir.1974), that a bona fide legal dispute exists when there…