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Held: We have jurisdiction in this levy
proceeding to determine whether P’s unpaid liabilities
were discharged in bankruptcy. Washington v.
Commissioner, 120 T.C. 114 (2003), followed.
Held, further: P’s unpaid liabilities were not
discharged in the ch. 7 bankruptcy proceeding. Under
11 U.S.C. sec. 523(a)(1)(B) (2000), if a required
return is not filed, then the tax debt is generally
excepted from discharge. P did not file Federal income
tax returns, and the SFRs prepared by R in this case do
not constitute “returns” within the meaning of sec.
523(a)(1)(B) of the Bankruptcy Code. Additionally, R
is not enjoined from collecting the unpaid liabilities
because the liabilities were excepted from discharge
and the bankruptcy court did not make an express
determination that the liabilities were discharged.
Finally, a default judgment has not occurred because
the debt at issue is not of a kind that required R to
file a complaint in the bankruptcy court. Therefore,
the determination to proceed with collection by levy is
sustained.
Neal Swanson, pro se.
Ann S. O’Blenes, for respondent.
OPINION
GOEKE, Judge: The petition in this case was filed in
response to a Notice of Determination Concerning Collection
Action(s) Under Section 6320 and/or 6330 (the notice of
determination). The substantive issue presented is whether the
unpaid liabilities that are the subject of the collection action
were discharged in petitioner’s chapter 7 bankruptcy proceeding.
However, before we can reach this issue, we must first address
whether we have jurisdiction to decide the issue and whether
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Last modified: May 25, 2011