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to do with collection of a taxpayer’s unpaid liability for a
taxable year. We must determine in the instant lien proceeding
whether respondent may proceed with the collection action as
determined in the notice of determination with respect to, inter
alia, petitioners’ taxable years 1994 and 1995. Whether the U.S.
Bankruptcy Court for the Southern District of New York discharged
petitioners from their respective unpaid liabilities for those
years is an issue that has a direct bearing on whether respondent
may proceed with the lien at issue.9 We hold that in the instant
lien proceeding commenced under section 6330(d)(1) the Court has
jurisdiction to determine whether the U.S. Bankruptcy Court for
the Southern District of New York discharged petitioners from
such unpaid liabilities.
Having held that we have jurisdiction to resolve the dispute
between the parties over whether the U.S. Bankruptcy Court for
the Southern District of New York discharged petitioners from
their respective unpaid liabilities for their taxable years 1994
and 1995, we now address that dispute.
9Sec. 6330(c)(2) allowed petitioners to raise at their
Appeals Office hearing any relevant issue with respect to their
respective unpaid liabilities for their taxable years 1994, 1995,
and 1998, including “(ii) challenges to the appropriateness of
collection actions”. Sec. 6330(c)(2)(A). Respondent does not
dispute that petitioners’ claim at their Appeals Office hearing
that the U.S. Bankruptcy Court for the Southern District of New
York discharged them from their respective unpaid liabilities for
their taxable years 1994 and 1995, which are the subject of a
lien, raised a relevant issue that challenges the appropriateness
of such lien.
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