Opinion ID: 583422
Heading Depth: 2
Heading Rank: 5

Heading: vis-a-vis other general creditors

Text: 50 We next consider whether the employees, suppliers, and utilities had an interest in the funds superior to the IRS's interest. Honey and Meador have presented no evidence or argument that Phoenix had any legal obligation to use available funds to pay employees, suppliers, and utilities which was superior to its obligation to remit the unpaid employment taxes to the IRS. In Olsen, as in other cases, we held without hesitation that Olsen acted willfully in paying employees and creditors other than the IRS in preference to the payment of the unsatisfied employment tax liability. See Olsen, 952 F.2d at 241. We hold as a matter of law that the interests and rights of the general creditors who were paid from Phoenix's funds were not superior to the interests and rights of the IRS to payment of the unsatisfied employment tax liability.