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Discussion
Title 11 of the United States Code provides uniform procedures designed
to promote the effective rehabilitation of the bankrupt debtor and the
equitable distribution of his assets among his creditors. See H. Rept. 95-
595, at 340 (1977). One of the key elements to achieving these aims is the
automatic stay that generally operates to temporarily bar actions against or
concerning the debtor or property of the debtor or the bankruptcy estate. See
Halpern v. Commissioner, 96 T.C. 895, 897-898 (1991). The automatic stay
serves to preclude the commencement or continuation of proceedings in this
Court. Specifically, 11 U.S.C. section 362(a)(8) (1988), provides in
pertinent part:
(a) Except as provided in subsection (b) of this section, a
petition filed under section 301, 302, or 303 of this title, * * *
operates as a stay, applicable to all entities, of--
* * * * * * *
(8) the commencement or continuation of a proceeding before
the United States Tax Court concerning the debtor.
In short, the filing of a bankruptcy petition invokes the automatic stay that
precludes the commencement or continuation of proceedings in this Court.
Allison v. Commissioner, 97 T.C. 544, 545 (1991).
Notwithstanding the foregoing, respondent is free to issue a notice of
deficiency to a taxpayer involved in bankruptcy proceedings. See 11 U.S.C.
sec. 362(b)(9) (1988).4 In the event that respondent issues a notice of
deficiency to a taxpayer during the pendency of a bankruptcy case, the running
4 11 U.S.C. sec. 362(b)(9) (1988), provides in pertinent part:
(b) The filing of a petition under section 301, 302, or 303
of this title, * * * does not operate as a stay--
* * * * * * *
(9) under subsection (a) of this section, of the issuance to
the debtor by a governmental unit of a notice of tax deficiency;
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