In Re Cennamo
Cennamo v. United States (In Re Cennamo)
Opinion
Opinion
Wilson, J.
MEMORANDUM OF DECISION
Gerald J. Cennamo and Sharon K. Cenna-mo (“Debtors”) claim that an invalid assessment listed on a Notice of Federal Tax Lien for 26 U.S.C. §§ 6700 and 6701 tax penalties renders the lien invalid. Alternatively, if the lien is valid, the Debtors seek to invoke the doctrine of equitable subordination under 11 U.S.C. § 510 (c) of the Bankruptcy Code (“Code”) so as to subordinate the §§ 6700 and 6701 tax penalties to the 26 U.S.C. § 6672 tax penalty.
I. STATEMENT OF FACTS
The Debtors filed a petition under Chapter 7 of the Code on July 12, 1989. The Debtors were granted a discharge on December 28, 1989. Subsequently, the Debtors filed a voluntary petition under Chapter 13 of the Code on October 4, 1991. On January 27, 1992, the Internal Revenue Service (“IRS”) filed a proof of claim in the amount of $1,026,431.26 for unpaid tax liabilities pursuant to 26 U.S.C. §§ 6700 , 6701, and 6672. On February 3, 1992, the Debtors filed an adversary complaint against the United States of America (“Defendant”).
The Debtors’ adversary complaint alleged three causes of action against the Defendant: (1) for an erroneous federal tax lien under 11 U.S.C. § 502 (b)(1); (2) for…