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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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