- 31 -
parties agree that if we were to so hold, petitioners would not
be “insolvent” within the meaning of section 108(d)(3), and the
insolvency exception of section 108(a)(1)(B) would not apply to
the $42,142 of DOI income resulting from the foreclosure sale in
question. Consequently, we sustain respondent’s determination to
include that DOI income in petitioners’ gross income for the year
at issue.
Accuracy-Related Penalty--Section 6662
Respondent determined that petitioners are liable for the
year at issue for the accuracy-related penalty under section
15(...continued)
permit is exempt from creditors’ claims under the laws of the
State of Alaska. Petitioners are correct that Alaska Stat. sec.
09.38.015(a)(8) (Lexis 2000) generally exempts limited entry
fishing permits like petitioners’ fishing permit from the claims
of creditors. See also Alaska Stat. sec. 09.38.500(5) (Lexis
2000). In addition, Alaska Stat. sec. 16.43.150(g)(1) (Lexis
2000) provides that such permits cannot be “pledged, mortgaged,
leased, or encumbered in any way”, except as specifically pro-
vided in certain enumerated sections of the Alaska statutes.
However, petitioners fail to indicate that limited entry fishing
permits, like petitioners’ fishing permit, are not exempt from
creditors’ claims under Alaska law for all purposes and that such
permits may be used to secure a loan for the payment of past due
Federal tax obligations. For example, petitioners do not discuss
the effect of Alaska Stat. sec. 09.38.065 (Lexis 2000), which
allows under certain circumstances creditors to make claims
against certain assets that are generally exempt from creditors’
claims under certain provisions of the Alaska statutes. In
addition, petitioners do not mention that petitioners’ fishing
permit is subject to lien and levy by respondent. See supra
n.14. Nor do petitioners address the effect of recently enacted
legislation in Alaska that allows petitioners to obtain a loan in
an amount not exceeding $30,000, secured by petitioners’ fishing
permit, in order to pay their past due Federal tax liabilities
that may result in the execution on and involuntary transfer of
petitioners’ fishing permit. See supra n.14.
Page: Previous 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 NextLast modified: May 25, 2011