In Re Falwell Excavating Co., Inc.

MEMORANDUM OPINION

WILLIAM E. ANDERSON, Bankruptcy Judge.

This case is before the Court upon the Trustee’s objection to the Internal Revenue Services’ (I.R.S.) unsecured claim for pre-petition penalties and interest. The debtor had its Chapter 11 plan confirmed by the Court on April 25, 1983, and provided for the payment of taxes within eighteen months. The Trustee has filed a memorandum of law in which he argues that the Court should disallow all prepetition penalties and interest, or alternatively, subordinate said penalties and interest to the claims of the general unsecured creditors.

The…