Vulcan Materials Co. v. Jack Raus, Inc. (In Re HLW Enterprises of Texas, Inc.)
157 B.R. 592 | United States Bankruptcy Court, W.D. Texas | 1993
Holding Summary
Construction payments held by a contractor create a trust fund for all materialmen and suppliers in the subcontract chain upon initial payment by the owner, and a federal tax lien cannot attach to funds in which the taxpayer has no interest.
Once the owner makes a payment to either the general contractor or to a subcontractor, that payment gives rise to a trust for all parties in the subcontract chain.
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