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IN RE 800IDEAS.COM, INC.

BAP No. SC-12-1496-JuBaPa. Bankruptcy No. 07-00207.

496 B.R. 165 (2013)

In re 800IDEAS.COM, INC., Debtor. Richard M. Kipperman, Chapter 7 Trustee, Appellant, v. Internal Revenue Service, U.S.A.; United States Trustee; 800Ideas.com, Inc., Appellees.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Decided July 22, 2013.

Attorney(s) appearing for the Case

Geraldine A. Valdez, Esq. , San Diego, CA, Financial Law Group, argued for Appellant Richard M. Kipperman, Chapter 7 Trustee; Anne E. Nelson, Esq., U.S. Department of Justice, argued for Appellee Internal Revenue Service.

Before JURY, BASON and PAPPAS, Bankruptcy Judges.

OPINION

JURY, Bankruptcy Judge.

Richard M. Kipperman, chapter 71 trustee in the case of debtor 800Ideas.com, appeals the bankruptcy court's order allowing the claim of the Internal Revenue Service (IRS) with priority as an actual and necessary cost and expense of preserving the estate under § 503(b)(1)(A).2

IRS's claim arose postpetition when it assessed penalties against debtor under...

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