Thomas L. Freytag and Sharon N. Freytag - Page 8

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               The enactment of 11 U.S.C. secs. 362 and 505 was part of the           
          major reform of the bankruptcy laws accomplished by the                     
          Bankruptcy Reform Act of 1978, Pub. L. 95-598, 92 Stat. 2549.               
          The legislative history clearly shows that Congress understood              
          that the bankruptcy courts and this Court would have concurrent             
          jurisdiction in cases regarding common issues of Federal tax                
          liability of bankrupts who are properly before both courts.3                
          United States v. Wilson, 974 F.2d 514, 517 (4th Cir. 1992).  If             
          the bankruptcy court first decides the common tax issue, its                
          decision is to be binding under principles of res judicata upon             
          this Court:                                                                 
               the bankruptcy judge will have authority to determine                  
               which court will determine the merits of the tax claim                 
               both as to claims against the estate and claims against                
               the debtor concerning his personal liability for                       
               nondischargeable taxes.  Thus, * * * the bankruptcy                    
               judge can either rule on the merits of the claim and                   
               continue the stay on any pending Tax Court proceeding                  
               or lift the stay * * *.  If he rules on the merits of                  
               the complaint before the decision of the Tax Court is                  

               3    Prior to the enactment of the Bankruptcy Reform Act of            
          1978, Pub. L. 95-598, 92 Stat. 2549, the House and the Senate               
          formulated different proposals as to how the bankruptcy laws                
          should be revised, and a compromise bill was eventually entered             
          into law.  See 3 Collier, Collier on Bankruptcy, pars. 505.02 and           
          505.03 (15th ed. 1996).  No formal conference was held to                   
          formulate the compromise bill, but the sponsors of the bill                 
          issued extensive comments which served in the place of a                    
          conference committee report.  124 Cong. Rec. 32391-32420 (1978)             
          (Representative Edwards); 124 Cong. Rec. 33992-34019 (1978)                 
          (Senator DeConcini); see, generally, Kennedy, Foreword:  "A Brief           
          History of The Bankruptcy Reform Act", 58 N.C.L. Rev. 667, 676-77           
          (1980).  Those comments provide persuasive evidence of Congress'            
          intent when it enacted 11 U.S.C. secs. 362 and 505.  See Begier             
          v. I.R.S., 496 U.S. 53, 64-65 n.5 (1990); United States v.                  
          Wilson, 974 F.2d 514, 518 (4th Cir. 1992).                                  




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