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including tax debts,16 are dischargeable, bankruptcy courts have
concurrent jurisdiction with other courts. Whitehouse v.
LaRoche, 277 F.3d 568, 576 (1st Cir. 2002); In re McKendry, supra
at 335 n.3; In re Galbreath, supra at 551; Fed. R. Bankr. P. 4007
Advisory Committee’s Note (1983) (“Jurisdiction over this issue
on these debts [debts listed under 11 U.S.C. sec. 523(a)(1), (3),
(5), (7), (8), and (9)] is held concurrently by the Bankruptcy
Court and any appropriate nonbankruptcy forum.”); 4 Collier on
Bankruptcy, par. 523.03, at 523-17. As explained below, this
concurrent jurisdiction generally allows dischargeability issues
relating to certain debts to be decided by a nonbankruptcy court
if the issues have not been addressed by the bankruptcy court in
a prior chapter 7 proceeding.
Rule 4007(a) of the Federal Rules of Bankruptcy Procedure
provides that a debtor or any creditor may file a complaint to
obtain a determination of the dischargeability of any debt.
Generally, 11 U.S.C. sec. 523(c) provides that a debtor is
16A bankruptcy court may determine the amount or legality of
any tax, any fine or penalty relating to a tax, or any addition
to tax as long as the matter has not been contested before and
adjudicated by a judicial or administrative tribunal of competent
jurisdiction before the commencement of the case under title 11.
11 U.S.C. sec. 505(a). This authority to fix a debtor’s tax
liability is discretionary. In re Shapiro, 188 Bankr. 140, 143
(Bankr. E.D. Pa. 1995); In re Queen, 148 Bankr. 256, 259 (S.D.
W.Va. 1992), affd. without published opinion 16 F.3d 411 (4th
Cir. 1994). If a bankruptcy court specifically considers and
decides a tax issue, then this Court will generally adhere to the
bankruptcy court’s decision on the matter. See Katz v.
Commissioner, 115 T.C. 329, 339-340 (2000).
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