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and the case was continued. Petitioner was ordered to file a
status report no later than December 1, 1996. Petitioner failed
to file the required report. On December 9, 1996, petitioner was
again ordered to file a status report due no later than
January 27, 1997. She was also ordered to show cause why her
case should not be dismissed on account of her failure properly
to prosecute and why the Court should not sanction her for
failure to comply with orders of the Court.
Petitioner had not complied with our December 9, 1996, order
by January 2, 1997, the date on which petitioner filed for
bankruptcy (causing us to order all proceedings automatically
stayed because of 11 U.S.C. sec. 362(a)(8) (1994)). The
Government moved in bankruptcy court for relief from the
automatic stay in order that this case could continue in this
Court. Petitioner objected and sought sanctions and damages
against the Government. The bankruptcy court recited the
Government’s position as follows: “In sum, the Government
contends this is nothing more than a two-party dispute which is
already pending before the Tax Court”. The bankruptcy court
granted the Government’s motion and lifted the stay on March 25,
1997. The bankruptcy court said that petitioner’s contentions
were “without merit concerning her right to have her tax
liability determined by this Court.” Petitioner’s motion for
sanctions was denied with prejudice, the bankruptcy court
stating: “[T]here is not a scintilla of evidence presented to
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