In Re: USA v. Lawrence Warfield

NOT FOR PUBLICATION FILED

UNITED STATES COURT OF APPEALS SEP 3 2024

MOLLY C. DWYER, CLERK

U.S. COURT OF APPEALS

FOR THE NINTH CIRCUIT

In re: ALBERT G. FREEMAN, Jr.; No. 23-15827

DEANNA L. FREEMAN,

D.C. No. 3:21-cv-08274-DJH Debtors. ______________________________

MEMORANDUM*

UNITED STATES OF AMERICA,

Appellant,

v.

LAWRENCE J. WARFIELD, Chapter 7 Trustee,

Appellee.

Appeal from the United States District Court for the District of Arizona Diane J. Humetewa, District Judge, Presiding

Argued and Submitted May 17, 2024 Phoenix, Arizona

Before: GRABER, DESAI, and DE ALBA, Circuit Judges.

The Internal Revenue Service (IRS) appeals the allocation of proceeds from

the sale of real property between the IRS and the Bankruptcy Estate on a pro rata

* This disposition is not appropriate for publication and is not precedent except as provided by Ninth Circuit Rule 36-3. basis, where the IRS held a valid tax lien that included debts for taxes and related

penalties and that exceeded the value of the encumbered property. The Trustee

avoided the penalty portion of the tax lien under 11 U.S.C. § 724(a), which…