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the court held that, by operation of a New Jersey statute, N.J.
Stat. Ann. sec. 25:2-1(b) (West Supp. 2003), the debtor’s
individual retirement account (IRA) was excluded from the chapter
7 bankruptcy estate, pursuant to 11 U.S.C. sec. 541(c)(2)(2000).
In re Yuhas, 104 F.3d at 613. In re Yuhas did not involve a
Federal tax lien or levy, nor did it involve post-discharge
collection activity.
Moreover, even if the holding of In re Yuhas were applicable
and required the exclusion of petitioner’s section 401(k)
retirement account from the chapter 7 bankruptcy estate, a
Federal tax lien against the section 401(k) retirement account
would not be extinguished or otherwise affected. See U.S. I.R.S.
v. Snyder, 343 F.3d 1171, 1178 (9th Cir. 2003). The lien would
continue to exist, but outside of bankruptcy. Id. Petitioner’s
reliance on In re Yuhas, supra, is thus misplaced, and that case
has no application in the instant case.
Respondent argues that, even if petitioner received a
discharge in bankruptcy with regard to his 1989 and 1991 tax
liabilities, any property that belonged to petitioner when he
filed his bankruptcy petition is still encumbered in rem by a
Federal tax lien. Respondent argues that a State law cannot
operate to divest or exempt petitioner’s section 401(k)
retirement account from the Federal tax lien. Respondent
contends that collection by levy is appropriate. We agree.
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