- 9 - The Bankruptcy Case On May 5, 1995, petitioner and her husband filed a voluntary petition for liquidation under chapter 7 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Western District of Pennsylvania (the bankruptcy case). In the bankruptcy case, respondent filed a $379,025.90 proof of claim. On June 17, 1996, the bankruptcy court granted the Doyles a discharge pursuant to 11 U.S.C. sec. 727. In this case, petitioner initially contended that the income taxes at issue were discharged in the bankruptcy case. Petitioner conceded before trial that her joint and several income tax liabilities for the years 1980 through 1983 were excepted from bankruptcy discharge pursuant to 11 U.S.C. sec. 523(a)(1)(C). Payment of Tax Deficiencies The Doyles have not made any voluntary payments on their assessed tax liabilities. During 1994 and 1995, respondent placed a continuing levy on the wages of petitioner’s husband which resulted in the receipt of $34,672.71 and $14,132.45, respectively. On June 5, 1995, respondent applied a $6,345 overpayment due the Doyles to their 1980 tax liability. In addition, respondent retained the following refunds due the Doyles to offset their assessed tax liabilities:Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011