The opinion of the court was delivered by: KRAFT
The Government instituted this action against the defendant, American Caramel Company (Caramel), to recover unpaid federal internal revenue taxes, penalties and interest, and against the defendant, American Caramel Realty Corporation (Realty) to foreclose on real estate conveyed by Caramel to Realty subject to liens for the same taxes. The Government seeks no present relief against the remaining defendants.
The Government and Realty filed a written stipulation on October 10, 1956 and, pursuant thereto, deposited in the Registry of this Court the sum of $ 15,000, representing proceeds of insurance coverage upon a building which was located on part of the transferred real estate and which was destroyed by fire on January 13, 1956. It was stipulated that this deposit should be paid out conformably to the result of this suit. Caramel expressly assented to this stipulation at the trial.
The Government and Realty also entered into a written stipulation as to certain facts. This stipulation was filed March 25, 1958, and, with minor exceptions, was assented to by Caramel at trial.
The action was tried to the Court without a jury. Counsel have submitted requests for findings of fact, conclusions of law and supporting briefs. From the evidence and the stipulation of the parties, we make the following
(a) No. 644, Federal Lien Docket No. 1 in the amount of $ 8,621.57 on July 10, 1952;
(b) No. 660, Federal Lien Docket No. 1 in the amount of $ 840.15 on August 28, 1952;
(c) No. 669, Federal Lien Docket No. 1 in the amount of $ 783.44 on October 31, 1952;
(d) No. 692, Federal Lien Docket No. 1 in the amount of $ 11,547.83 on February 3, 1953.
2. The real estate which Realty acquired in a spin-off conveyance from Caramel was subject to these liens.
3. During the year 1953, Caramel, by payments, reduced its delinquent tax indebtedness to approximately $ 24,000.
4. In December, 1953, Caramel sold all of its remaining assets to Just Born, Inc. As a result of this purchase Just Born, Inc. owed Caramel in excess of $ 141,000.
5. On February 4, 1954, the Government levied on all funds due Caramel in the hands of Just Born, Inc. This levy covered the delinquent taxes for which the aforesaid liens had been filed.
6. Just Born, Inc., asked the Government what was the amount of taxes owed by Caramel and was advised that those taxes with interest and penalties ...