United States v. Brae Asset Fund, L.P.

OPINION AND ORDER

ROBERT J. JONKER, District Judge.

The United States of America (“the IRS”) appeals from a judgment of the Bankruptcy Court. The Bankruptcy Court rejected on summary judgment the IRS’ bid to treat tax assessments related to the debtor’s 2000 and 2001 income tax returns as priority claims under 11 U.S.C. § 507(a)(8)(A.)(iii).1 If the IRS obtains priority status on the 2000 and 2001 debts, it will receive all or virtually all of the Chapter 7 debtor’s estate. Without priority status, the IRS will receive only a pro rata distribution on those tax claims, which will leave the…