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return. Under these circumstances petitioner is ineligible for
low-income housing credits.
C. Alleged Waiver of Petitioner’s Income Taxes
Lastly, petitioner argues that respondent “waived all claims
for payment [of taxes] * * * at the September 26, 1997 bankruptcy
court confirmation hearing.” At the plan confirmation hearing,
counsel for the Commissioner withdrew a previous objection
because the confirmed plan called for the full payment of
employment taxes due and owing by V&M Management. There were no
claims against V&M Management for income tax liabilities because
an S corporation is not generally liable for income tax.
We agree with respondent that petitioner is obviously
confusing V&M Management with himself. The record demonstrates
that V&M Management, and not petitioner, filed a petition for
reorganization in bankruptcy. The Commissioner filed proofs of
claim in the bankruptcy case for unpaid employment taxes. It was
these taxes, owed by V&M Management, which were at issue in the
bankruptcy proceeding. A plan of reorganization was confirmed by
the bankruptcy court to which the Commissioner had no objection.
In contrast, here, petitioner filed a petition seeking
redetermination of a deficiency of income taxes determined
against him. V&M Management is not a party to these proceedings.
Although the amount of the deficiency that respondent determined
is directly related to the sale of the Mandela Apartments by V&M
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