Edward H. and Anne G. Harrell - Page 21

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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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