- 13 - joint partnership interest) and a spouse who is deemed a partner because a joint return was filed.6 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. Locke'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. Locke is not a debtor in a bankruptcy proceeding. Consequently, there is no concern about an automatic stay, and thus no reason to convert 6 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.").Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
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