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liabilities. The bankrupt's right to invoke the
jurisdiction of the bankruptcy court was available after
immediate assessment of tax by the IRS, but the ruling of
the bankruptcy court had a limited effect on the IRS. The
IRS could proceed after the immediate assessment of the tax
to collect the tax by levy and distraint on the bankrupt's
property and could seize and sell assets in which the
bankrupt had an interest.
As the court in Abel v. Campbell, 334 F.2d 339, 341 (5th
Cir. 1964), explained, the pre-1980 section 6871 was meant to
take jurisdiction of a pending case from the Tax Court.
once a tax claim has been asserted and allowed in a
bankruptcy proceeding * * * neither the language of the
Code nor the sense of the situation suggests that any
of the procedure of section 6213 again becomes
prerequisite to the establishment and collection of
that particular tax liability. [Id. at 342, quoting
Cohen v. Gross, 316 F.2d 521, 523 (3d Cir. 1963)].
This results, however, from the pre-1980 version of section
6871 and the intricacies of the Bankruptcy Act. On the other
hand, the present Bankruptcy Code merely stays Tax Court
proceedings while the case is processed by the bankruptcy court.
See 11 U.S.C. sec. 362(a)(8), (c)(2)(C). Thereafter, the rules
of res judicata are applicable as discussed infra.
Furthermore, even if this Court lacked subject matter
jurisdiction, that fact would not affect the suspension of the
period of limitations for assessment. There was still a petition
before this Court with respect to the deficiencies for 1978,
1981, and 1982. Consequently, the period of limitations under
section 6503(a) was still tolled. Green Spring Dairy v.
Commissioner, 208 F.2d 471 (4th Cir. 1953), affg. 18 T.C. 217
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