United States Third Circuit

In a former restaurant owner's bankruptcy proceedings, the Bankruptcy Court's holding that the sales taxes at issue are trust fund taxes under 11 U.S.C. section 507(a)(8)(C) rather than excise taxes under section 507(a)(8)(E) is affirmed, as sales taxes collected by a retailer never become the property of the retailer because it retains those funds in trust for the state, and therefore, petitioner's sales-tax obligation is subject to section 507(a)(8)(C) and is not dischargeable.

Appellate Information

• Decided 07/20/2012
• Published 07/20/2012

Judges

• Hardiman

Court

• United States Third Circuit

Counsel