In Re Coleman American Moving Services, Inc.

MEMORANDUM OF DECISION

JAMES A. PUSATERI, Bankruptcy Judge.

In this chapter 11 proceeding the debtor-in-possession, Coleman American Moving Services, Inc. (Coleman) objects to the priority claim of the Internal Revenue Service (IRS) arguing the IRS cannot have a priority claim on interest arising from an erroneous refund if the tax to which the refund is related has lost its priority status. The IRS argues a claim for interest on the erroneous refund, though dependent on the original priority of the underlying tax, does not lose that status if assessed within the time allowed by the Bankruptcy…