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unpaid income tax liabilities have been discharged in
bankruptcy.4
Petitioner’s 1996 Income Tax Liability
Section 523 of the Bankruptcy Code provides some exceptions
to the discharge of debts in bankruptcy. See 11 U.S.C. sec. 523
(2000). Subsection (a)(1)(A) excepts from discharge taxes within
the “three-year lookback period” (the lookback period) described
in section 507(a)(8) of the Bankruptcy Code. The lookback period
includes taxes “on or measured by income or gross receipts--for a
taxable year ending on or before the date of the filing of the
petition for which a return, if required, is last due, including
extensions, after three years before the date of the filing of
the petition”. 11 U.S.C. sec. 507(a)(8)(A)(i) (2000). As stated
in Young v. United States, 535 U.S. 43, 46 (2002): “If the IRS
has a claim for taxes for which the return was due within three
years before the bankruptcy petition was filed, the claim * * *
is nondischargeable in bankruptcy”.
Petitioner’s income tax return for the taxable year 1996 was
due on April 15, 1997. Petitioner filed her chapter 7 bankruptcy
4Sec. 6330(c)(2) provides that a taxpayer may raise at the
sec. 6330 hearing “any relevant issue relating to the unpaid
tax”, which includes “challenges to the appropriateness of
collection actions”. Sec. 6330(c)(2)(A)(ii). Petitioner’s
contention that her 1995 and 1996 income tax liabilities were
discharged in bankruptcy raises an issue relevant to the
appropriateness of the collection action. Washington v.
Commissioner, 120 T.C. 114, 120 n.9 (2003).
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