United States v. Unsecured Creditors' Committee of C-Tof Virginia, Inc. (In re C-T of Virginia, Inc.)

OPINION

FRANK A. KAUFMAN, Senior District Judge:

During a Chapter 11 bankruptcy proceeding instituted by C-T of Virginia, Inc. (CT),1 the Internal Revenue Service (IRS) filed an unsecured priority claim under Section 507(a)(7) of the Bankruptcy Code for taxes imposed pursuant to Title 26, Section 4980 of the United States Code (“retirement plan tax”),2 in the amount of $285,-443.35 plus interest. Section 4980 imposed a tax upon an employer equal to 10 percent of the assets of a qualified pension plan in the event the assets of the plan revert to the employer upon the plan’s termination.3

*139The…