In re Patin

MEMORANDUM OF DECISION

ALAN JAROSLOVSKY, Bankruptcy Judge.

The Internal Revenue Service has objected to the debtor’s Chapter 13 plan because it proposes to separately classify tax penalties and pay nothing on them, while paying 100% to other unsecured claims. While the issue does not seem to be completely resolvable based on briefs, the court will do as much as it can.

The court first notes that section 1322(a)(2) of the Bankruptcy Code requires that a Chapter 13 plan must provide for all priority claims to be paid in full. Section 507(a)(8)(G) provides that tax penalties are entitled to…