United States Supreme Court Cases & Opinions

U.S. Supreme Court

Boteler v. Ingels, 308 U.S. 57 (1939)

Boteler v. Ingels

Nos. 15 and 16

Argued October 16, 1939

Decided November 6, 1939

308 U.S. 57

Syllabus

1. Section 57(j) of the Bankruptcy Act, barring allowance of debts owing to federal, state, or local government, as penalties, except for the amount of the pecuniary loss sustained etc., prohibits allowance of tax penalties only if incurred by the bankrupt prior to bankruptcy. P. 308 U. S. 59.

2. Penalties attaching upon nonpayment of state automobile license taxes, which taxes and penalties accrued while the business of bankrupt estate was being operated by a trustee in bankruptcy for the purpose of liquidation, are allowable against the bankrupt estate by virtue of the Act of June 18, 1934, which subjects trustees and other appointees of United States courts, who are authorized to conduct business, "to all State and local taxes applicable to such business the same s if such business were conducted by an individual or corporation. . . ." P. 308 U. S. 60.

100 F.2d 915 affirmed.

Certiorari, 307 U.S. 617, to review the reversal of two orders of the District Court which in effect held a bankrupt estate not liable for penalties accruing upon nonpayment of state automobile license taxes. Appeals from the orders were consolidated for briefing, hearing, and decision in the Circuit Court of Appeals, and the cases are treated similarly here.

Page 308 U. S. 58