122 T.C. No. 20
UNITED STATES TAX COURT
OREN L. BENTON, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 7602-02. Filed May 12, 2004.
P’s ch. 11 bankruptcy commenced in 1995, and he
was discharged upon the confirmation of his plan of
reorganization during 1997. Effectively, at the time
of confirmation, all of the estate’s assets were
transferred to a liquidating trust for the benefit of
creditors. P had net operating losses (NOLs) that
arose in years prior to the bankruptcy commencement.
P’s bankruptcy estate also incurred tax losses. The
bankruptcy estate succeeded to P’s precommencement
NOLs. Under sec. 1398(i), I.R.C., P would succeed to
the tax attributes (NOLs) of the bankruptcy estate,
upon its termination. P contends that his ch. 11
bankruptcy terminated upon the confirmation of the plan
and the discharge of the debtor. R contends that a ch.
11 bankruptcy does not terminate until closed by a
final order of a bankruptcy court.
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