- 9 -
discharged in bankruptcy pursuant to 11 U.S.C. secs. 523(a)(1)(A)
and 507(a)(8)(A)(iii) (2000). Those sections provide
collectively that an income tax liability that is “not assessed
before, but assessable * * * after” commencement of the
bankruptcy proceeding, is not dischargeable. Thus, respondent
argues, the examination assessment, which was not made before the
commencement of the bankruptcy proceeding on March 10, 1995, but
instead was made after commencement, on December 29, 1997, was
not dischargeable pursuant to the foregoing provisions.
We agree that the examination assessment was not
dischargeable but disagree with respondent’s analysis.
Specifically exempted from the nondischargeability rule for
income taxes that were not assessed before but are assessable
after commencement of bankruptcy proceedings are income taxes
with respect to which a return was filed after its due date
(including extensions) and after 2 years before the filing of the
bankruptcy petition. See 11 U.S.C. secs. 507(a)(8)(A)(iii),
523(a)(1)(B)(ii) (2000). Such taxes are nondischargeable without
regard to the timing of the assessment. Petitioners’ 1991 return
was untimely filed on September 28, 1993, which is after 2 years
before the filing of the bankruptcy petition on March 10, 1995.5
5We note that there is a discrepancy in the record regarding
the filing date of the bankruptcy petition. The parties have
stipulated that the petition was filed on Mar. 10, 1995; however,
the bankruptcy court’s discharge order indicates that the
(continued...)
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011