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predicted that respondent would prevail in the Tax Court because
of the “great importance placed by the Tax Court upon enforcing
stipulations entered into in deficiency proceedings.” According
to the bankruptcy court, allowing the parties to conclude
litigation with respect to 1981 and 1984 tax years in the Tax
Court would “provide finality as to those years.”
With respect to 1985, the bankruptcy court opined that the
refund paid in that year was not collectible by summary
assessment. The court relied on Interlake Corp. v. Commissioner,
112 T.C. 103 (1999), to hold that the refund paid to petitioner
was a nonrebate refund. As a nonrebate refund, there was no
“deficiency” within the meaning of section 6213(b)(3). According
to the bankruptcy court, because the nonrebate refund did not
fall within the section 6213(b) assessment procedures or the
section 6212 notice of deficiency procedures, the only recourse
for respondent would have been an action to recover an erroneous
refund under section 7405, for which the period of limitations
had expired.
On January 4, 2002, the United States filed a motion in the
bankruptcy court pursuant to Fed. R. Civ. P. 54(b), requesting
the bankruptcy court to certify for appeal its decision with
respect to the 1985 tentative refund. The motion explains that
district courts have jurisdiction to hear appeals from bankruptcy
court “final judgments, orders and decrees” pursuant to 28 U.S.C.
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