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tolling of the lookback period during the pendency of
petitioners’ respective and consolidated cases under chapter 11
of the Bankruptcy Code. Consequently, she reasoned, petitioners’
1991, 1992, and 1993 tax liabilities were not discharged under
chapter 7 because they fell within the 3-year lookback period.
Furthermore, in suggesting an installment agreement, AO
Martin required that if accepted it had to cover petitioners’ tax
liabilities for all unpaid years, including the challenged 1991,
1992, and 1993 liabilities. As previously noted, petitioners no
longer challenge their 1991-93 liabilities.
As of January 22, 2002, the date of the Notice of
Determination upon which this case is based, the United States
Supreme Court had not as yet decided Young v. United States, 535
U.S. 43 (2002), which had been argued on January 9, 2002, but was
not decided until March 4, 2002. In this case, the Supreme Court
affirmed the decision of the United States Court of Appeals for
the First Circuit in Young v. United States, 233 F.3d 56 (1st
Cir. 2000), in which the Court of Appeals held that the 3-year
lookback period in bankruptcy cases is automatically tolled
during the pendency of an earlier proceeding under the Bankruptcy
Code. In Young, 233 F.3d at 60, the Court of Appeals pointed out
that five other Courts of Appeals had adopted the rule that the
lookback period is automatically tolled during a prior
bankruptcy. By contrast, the Court of Appeals noted that three
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