- 7 -
If, after this Court acquires jurisdiction over a
controversy, the petitioner files a petition in the bankruptcy
court, 11 U.S.C. sec. 362(a)(8) (1994) (Bankruptcy Code) provides
that "a petition filed * * * operates as a stay, applicable to
all entities" including "the commencement or continuation of a
proceeding before the United States Tax Court". At the request
of a party in interest the bankruptcy court may lift the stay.
See 11 U.S.C. sec. 362(d), (e), and (f). And, unless previously
lifted, such a stay terminates at the earliest of the closing or
dismissal of the bankruptcy case or at the time a discharge is
granted or denied to an individual. 11 U.S.C. sec. 362(c); Smith
v. Commissioner, 96 T.C. 10 (1991). Once a stay has been lifted
or terminated this Court will proceed to resolve the dispute,
unless a stay is affirmatively reimposed by the bankruptcy court.
Kieu v. Commissioner, 105 T.C. 387, 394-395 (1995). However, 11
U.S.C. sec. 505(a)(1) (1994), provides:
Except as provided in * * * [11 U.S.C. sec.
505(a)(2)], the [bankruptcy] court may determine the
amount or legality of any tax, any fine or penalty
relating to a tax, or any addition to tax, whether or
not previously assessed, whether or not paid, and
whether or not contested before and adjudicated by a
judicial or administrative tribunal of competent
jurisdiction.[2]
2 11 U.S.C. sec. 505(a)(2) (1994) restricts the
bankruptcy court's authorization to determine tax liability to
cases which were not adjudicated by a judicial or administrative
tribunal before the commencement of the bankruptcy case.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011