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On August 4, 1995, the trustee of the bankruptcy estate
filed a proposed final account with the bankruptcy court. On
August 7, 1995, the trustee filed a final report with the
bankruptcy court. On August 24, 1995, the McGuirls filed an
objection to the proposed final account. On October 13, 1995,
the bankruptcy court approved the trustee's final application for
compensation and ordered the final distribution of funds on hand
in petitioner's bankruptcy estate.
Petitioner subsequently appealed the order providing for the
trustee's compensation and fees that were approved by the
bankruptcy court. At the time of trial on the matter before us:
(1) Undisbursed funds remained in the bankruptcy estate's
account; (2) the bankruptcy court had not discharged the trustee
of the estate, nor had the bankruptcy court ordered the estate
closed; and (3) the estate in petitioner's bankruptcy case
remained open pending the conclusion of litigation between the
McGuirls and the trustee of the bankruptcy estate.
2. The Proceeding in the Tax Court
Respondent issued a statutory notice of deficiency to
petitioner for the 1993 taxable year on February 20, 1996.4 The
3(...continued)
U.S.C. 362(a), (b) (1994); In re Krystal Cadillac Oldsmobile GMC
Truck, Inc., 142 F.3d 631, 637 (3d Cir. 1998). The stay is
lifted upon the earlier of the closing of the case, the dismissal
of the case, or upon the granting or denial of a discharge. 11
U.S.C. 362(c)(2) (1994); Guerra v. Commissioner, 110 T.C. 271,
275 (1998).
4 Respondent issued separate statutory notices of
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