A Trustee in Bankruptcy Must Withhold Federal Income Taxes from Wages Earned by an Employee of a Bankrupt prior to Bankruptcy, and the Taxes Are Entitled to Second Priority of Payment Under Section 64 of the Bankruptcy Act

Discusses issues brought to the U.S. Supreme Court regarding what a trustee should exclude on the bankrupt’s income tax. The author calls for Congress to amend sec 64 of the bankruptcy code. The amendment should expressly exempt the trustee from withholding taxes on the wages paid to second priority claimants. The amendment would help avoid the question of which priority class should encompass withholding taxes.