- 33 - jurisdiction, final judgment on the merits, and the same cause of action. See Hambrick v. Commissioner, 118 T.C. 348, 351 (2002);13 see also Commissioner v. Sunnen, supra at 597 (quoting Cromwell v. County of Sac, 94 U.S. 351, 352 (1877)). In DeHart v. United States, supra, the issue was whether the United States was required to pursue petitioners’ assets to satisfy the tax liability underlying the Commissioner’s claim, which arose from the August 15, 1978, notice of levy, before pursuing the bankruptcy estate’s assets to satisfy petitioners’ tax liability. The bankruptcy court decided that the Commissioner did not have to pursue petitioners’ assets before seeking the assets of the bankruptcy estate to satisfy petitioners’ tax liability.14 The causes of action in DeHart and 13In Hambrick v. Commissioner, 118 T.C. 348, 351 (2002), we observed: The general principle of res judicata is that once a court of competent jurisdiction has entered a final judgment on the merits of a cause of action, the parties to the suit and their privies are bound to each matter that sustained or defeated the claim, and as to any other matter that could have been offered for that purpose. * * * 14In DeHart v. United States, 50 Bankr. 685, 688 (Bankr. M.D. Pa. 1985), the bankruptcy court held: For these reasons we find that the doctrine of the marshalling of assets simply cannot be applied to the facts of this case. While we do not agree that there is a lack of equity in affording the Government a priority status in this case, we nonetheless realize that the estate, and more particularly the general creditors, do suffer a detriment by the IRS levy. We have determined that the plaintiff’s alternative (continued...)Page: Previous 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 Next
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