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the Bankruptcy Code by conducting a tax audit and issuing the
notices of deficiency.
Section 362(a) of the Bankruptcy Code provides in pertinent
part:
(a) Except as provided in subsection (b) of this
section, a petition filed under section 301, 302, or
303 of this title, * * * operates as a stay, applicable
to all entities, of–
* * * * * * *
(4) any act to create, perfect, or enforce any lien
against property of the estate;
(5) any act to create, perfect, or enforce against
property of the debtor any lien to the extent that such
lien secures a claim that arose before the commencement
of the case under this title;
(6) any act to collect, assess, or recover a claim
against the debtor that arose before the commencement
of the case under this title;
* * * * * * *
(8) the commencement or continuation of a proceeding
before the United States Tax Court concerning the
debtor. [11 U.S.C. sec. 362(a).]
A chapter 11 filing, however, does not operate as a stay of
either an audit by a governmental unit to determine tax liability
or the issuance to the debtor by a governmental unit of a notice
of tax deficiency. 11 U.S.C. sec. 362(b)(9)(A) and (B). Thus,
during the stay, the IRS may conduct an audit and issue a notice
of deficiency to the debtor.
If the IRS issues a notice of deficiency to a taxpayer who
has filed a bankruptcy petition, the normal 90-day period for
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