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of the time for filing a petition with this Court is suspended for the period
during which the taxpayer is prohibited by reason of the automatic stay from
filing a petition in this Court and for 60 days thereafter. Sec. 6213(f);
Olson v. Commissioner, 86 T.C. 1314, 1318-1319 (1986), and cases cited
therein; see also Zimmerman v. Commissioner, 105 T.C. 220 (1995).
The period that the automatic stay remains in effect is prescribed in 11
U.S.C. section 362(c) (1988), as follows:
(c) Except as provided in subsections (d), (e), and (f) of
this section--
(1) the stay of an act against property of the estate under
subsection (a) of this section continues until such property is no
longer property of the estate; and
(2) the stay of any other act under subsection (a) of this
section continues until the earliest of--
(A) the time the case is closed;
(B) the time the case is dismissed; or
(C) if the case is a case under chapter 7 of this
title concerning an individual or a case under chapter 9,
11, 12, or 13 of this title, the time a discharge is granted
or denied. [Emphasis added.]
Thus, unless relief from the automatic stay is granted by order of a
bankruptcy court (see 11 U.S.C. sec. 362(d) (1988)), the automatic stay
generally remains in effect until the earliest of the closing of the case,
dismissal of the case, or the grant or denial of a discharge. 11 U.S.C. sec.
362(c)(2) (1988); see also Allison v. Commissioner, supra at 545; Smith v.
Commissioner, 96 T.C. 10, 14 (1991); Neilson v. Commissioner, 94 T.C. 1, 8
(1990).
In the instant case, respondent issued a notice of deficiency to
petitioners on March 14, 1994, during the pendency of petitioners' bankruptcy
proceedings, as is permitted under 11 U.S.C. section 362(b)(9) (1988). It is
not disputed that petitioners were precluded by the automatic stay imposed
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