Neal Swanson - Page 9

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          filed Forms 1040 for the years in issue.  Respondent argues that            
          the bankruptcy court did not enjoin collection of petitioner’s              
          unpaid liabilities and that a default judgment has not occurred.            
          I.   Jurisdiction                                                           
               Before deciding the substantive issues, we must decide a               
          jurisdictional issue because petitioner’s contention that the               
          bankruptcy court is the only court that can determine whether the           
          unpaid liabilities were discharged raises the question of whether           
          we have the authority to decide this issue.  We addressed this              
          question in the context of a lien proceeding in Washington v.               
          Commissioner, 120 T.C. 114 (2003).  The instant case involves a             
          levy proceeding under section 6330(d)(1).                                   
               In Washington v. Commissioner, supra at 120-121, we stated:            
                    We have held in deficiency proceedings commenced                  
               in the Court under section 6213 that we do not have                    
               jurisdiction to determine whether a U.S. bankruptcy                    
               court has discharged a taxpayer from an unpaid tax                     
               liability in a bankruptcy proceeding instituted by such                
               taxpayer.  Neilson v. Commissioner, 94 T.C. 1, 9                       
               (1990); Graham v. Commissioner, 75 T.C. 389, 399                       
               (1980).  In so holding, we relied on Swanson v.                        
               Commissioner, 65 T.C. 1180, 1184 (1976), in which we                   
               observed that an action brought for redetermination of                 
               a deficiency “has nothing to do with collection of the                 
               tax nor any similarity to an action for collection of a                
               debt”.                                                                 
                    In contrast to a deficiency proceeding, a lien                    
               proceeding commenced in the Court under section                        
               6330(d)(1), such as the instant lien proceeding, is                    
               closely related to and has everything to do with                       
               collection of a taxpayer’s unpaid liability for a                      
               taxable year.  * * *  We hold that in the instant lien                 
               proceeding commenced under section 6330(d)(1) the Court                
               has jurisdiction to determine whether the U.S.                         





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