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you and there should be no liability for 1998 and
therefore, no reason to file the lien.
Balancing Efficient Collection and Intrusiveness:
It is necessary to balance the need to efficiently
collect the outstanding liability against the taxpay-
ers’ legitimate concerns that collection activity is
not overly intrusive.
In this case, you are mistaken in your belief that the
1994 and 1995 liabilities were discharged. Under
bankruptcy law 11 USC Sec. 523(a)(1)(B)(ii), the debt
in respect to a tax is not discharged if the return was
filed after two years before the date of the filing of
the petition. The returns for 1994 and 1995 were filed
02/03/1997. To be dischargeable they had to be filed
no later than 05/08/1996. Therefore, by statute, they
were not dischargeable.
The refund you expected for 1997 became part of the
bankruptcy estate when you filed the petition for
Chapter 7. This is a liquidation of assets and pro-
vides the mechanism for taking control of the property
of the debtor. You no longer had an interest in the
property of the bankruptcy estate therefore you lack
standing to challenge the treatment of the refund. See
In re Gucci, 126 F.3d 380, 388 (2d Cir. 1997). The
disallowance of the deduction of the amount of the
refund was the correct action and the liability created
by the disallowance is due and owing.
All legal and procedural guidelines were met prior to
the filing of the NFTL. The years in question are
based on valid assessments. The lien is considered to
be the least intrusive method of protecting the Govern-
ment’s interest in the collection of the debt.
The determination * * * to file the lien is sustained.
OPINION
In support of their position that respondent may not proceed
with collection with respect to their taxable years 1994 and
1995, petitioners contend that the U.S. Bankruptcy Court for the
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