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Bankruptcy Code section 507(a)(7)(A)(i) provides as follows:
§ 507. Priorities.
(a) The following expenses and claims have
priority in the following order:
* * * * * * *
(7) Seventh, allowed unsecured claims of governmental
units, only to the extent that such claims are for--
(A) a tax on or measured by income or gross
receipts--
(i) for a taxable year ending on or before the
date of the filing of the petition for which a return,
if required, is last due, including extensions, after
three years before the date of the filing of the
petition * * *
Because petitioners’ 1990 tax year ended on December 31,
1990--before petitioners filed their bankruptcy petition on
September 28, 1994--and because petitioners’ 1990 joint Federal
income tax return was due to be filed on October 15, 1991--within
the 3-year lookback period before the date on which petitioners’
bankruptcy petition was filed (i.e., October 15, 1991, to
September 28, 1994, is less than 3 years)--petitioners’
outstanding 1990 Federal income taxes qualify under Bankruptcy
Code section 507(a)(7)(A)(i) as a priority claim in favor of
respondent.5
5 Bankruptcy Code sec. 507(a)(7)(A) applies to unsecured
claims of creditors. At the time petitioners filed their
bankruptcy petition, respondent’s Federal income tax lien (NFTL)
(continued...)
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Last modified: March 27, 2008