Bankruptcy And IRC Section 4980H

The recent bankruptcy case of In re Creative Hairdressers, Inc. et al,  Case Nos. 20-14583 and 20-14584 (jointly administered) (Bankr. D. Md., March 3, 2022) involved the intersection of IRC section 4980H's employer shared responsibility payment and bankruptcy law.

Bankruptcy and Section 4980H's Employer Shared Responsibility Payment

This case addresses an interesting intersection of tax and bankruptcy law.  Specifically, it looks at the bankruptcy court's treatment of claims made by the Internal Revenue Service (IRS) under §4980H of the Internal Revenue Code.  The specific issue addressed is whether or not such claim is entitled to priority status as an excise tax under §507(a)(8)(E) of the Bankruptcy Code.  Ultimately, the Court concluded that it is entitled to such priority status to the extent that such claim related to any payments required under the statute arising within three years from the petition date.