Section 544(b)(1) of the Bankruptcy Code enables a trustee to step into the shoes of a creditor and avoid a transfer “of an interest of the debtor in property” that an unsecured.
Fourth Circuit issued an opinion holding, in part, that Internal Revenue Service IRS does not have sovereign immunity for claims arising under section 544b1 of Title 11 of the United States Bankruptcy Code. Similar holding in the Ninth Circuit from 2017.