Oren L. Benton - Page 21

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          chapter 11 reorganizations to chapter 7 liquidations and are thus           
          distinguishable from the current case.  In addition, the question           
          of whether a “termination” occurred before the closing of the               
          estate was not squarely presented in any of those cases.                    
               Section 346(i)(2) of the Bankruptcy Code, like section 1398,           
          provides for the succession of tax attributes from the estate to            
          the debtor in cases under chapter 7 or 11 of the Bankruptcy Code.           
          Section 346(i)(2) of the Bankruptcy Code provides:  “After such a           
          case is closed or dismissed, the debtor shall succeed to any tax            
          attribute to which the estate succeeded under paragraph (1) of              
          this subsection but that was not utilized by the estate.”  11               
          U.S.C. sec. 346.  Section 346(i)(2) of the Bankruptcy Code is               
          unambiguous and provides for the transfer of tax attributes after           
          the bankruptcy case is closed.  As we have already noted, the               
          term “closed” is well established in bankruptcy parlance.                   
               In Firsdon v. United States, supra, the issue before the               
          court was whether the bankrupt’s time for claiming a refund had             
          expired so as to deny the District Court jurisdiction over the              
          bankrupt’s refund claim.7  The bankrupt relied on section                   
          346(i)(2) of the Bankruptcy Code, which provides for the tolling            
          of limitation periods during the pendency of a bankruptcy case.             
          The Court of Appeals for the Sixth Circuit analyzed section                 

               7 The limitations question had to be resolved before the               
          District Court could consider the bankrupt’s claims to the                  
          estate’s losses within the context of sec. 1398(i).                         

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