- 13 -
because a joint return was filed.8 Cf. Estate of Callaway v.
Commissioner, T.C. Memo. 1998-99.
In addition, we note that the policy behind the bankruptcy
rule is inapplicable to Mrs. Scarfia's situation. The purpose
for the bankruptcy rule is to prevent the automatic stay of 11
U.S.C. section 362(a)(8) (1988), from impeding the TEFRA
proceeding. See Computer Programs Lambda, Ltd. v. Commissioner,
89 T.C. at 203. Title 11 U.S.C. section 362(a)(8) (1988),
generally provides that the filing of a bankruptcy petition
operates as a stay of the commencement or continuation of a
proceeding before the Tax Court concerning the debtor. See Kieu
v. Commissioner, 105 T.C. 387, 391 (1995). Since other partners
are unaffected by the resolution of a debtor-partner's bankruptcy
proceeding, the TEFRA proceeding should not be delayed pending
the outcome of a single partner's bankruptcy proceeding. Mrs.
Scarfia is not a debtor in a bankruptcy proceeding.
Consequently, there is no concern about an automatic stay, and
8
Indeed, the relevant regulatory provisions utilize
similar language in their treatment of a partner with a direct
interest (e.g., through community property) and an indirect
interest (through filing of a joint return). Compare sec.
301.6231(a)(12)-1T(a), Temporary Proced. & Admin. Regs., supra
("Thus, both spouses are permitted to participate in
administrative and judicial proceedings.") with sec.
301.6231(a)(2)-1T(a)(1), Temporary Proced. & Admin. Regs., 52
Fed. Reg. 6790 (Mar. 5, 1987) ("Thus, the spouse who files a
joint return with a partner will be permitted to participate in
administrative and judicial proceedings.").
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