Potter Stewart

“ No legitimate interest would be served by permitting the trustee to escape the unburdensome responsibility of merely filing the returns and thereby notifying the United States of the taxes that are due. We therefore affirm the judgment of the Court of Appeals with regard to the liability of the trustee for the penalties in question. ”

“ In the absence of explicit congressional direction, the considerations of equity and administrative convenience established by our decisions under the Bankruptcy Act clearly support this interpretation of the scope of this provision of the Judicial Code.
We find no merit in the Government's alternative suggestion that the interest on two of the taxes here in question-those withheld from the wages of employees and those collected from the patrons of the cabaret-constitutes a trust fund over which the United States has an absolute priority under § 7501 (a) of the Internal Revenue Code. ”

“ The allowance of interest on Chapter XI debts until the filing of a petition in bankruptcy promotes the availability of capital to a debtor in possession and enhances the likelihood of achieving the goal of the proceeding, the ultimate rehabilitation of the debtor. ”