- 13 -
B. The Bankruptcy Case
While we have yet to consider whether, when the IRS submits
a proof of claim for an unpaid Federal tax liability in a
taxpayer’s bankruptcy action, the taxpayer has the opportunity to
dispute the liability, within the meaning of section
6330(c)(2)(B), at least two other courts have answered that
question in the affirmative. Johnson v. United States, 92 AFTR
2d 2003-7233, 2003-2 USTC par. 50721 (N.D. Ga. 2003); PCT Servs.,
Inc. v. United States, 92 AFTR 2d 2003-5234, 2003-2 USTC par.
50536 (N.D. Ga. 2003); Triad Microsystems, Inc. v. United States,
90 AFTR 2d 2002-7332, 2003-1 USTC par. 50106 (E.D. Va. 2002). We
agree with those courts.
When the IRS submits a proof of claim for unpaid Federal tax
liabilities in a taxpayer's bankruptcy proceeding, the taxpayer
and trustee may object to the IRS’s proof of claim. Under 11
U.S.C. sec. 505(a), a bankruptcy court may, with certain
restrictions, determine: “the amount or legality of any tax, any
fine or penalty relating to a tax, or any addition to tax,
whether or not previously assessed, whether or not paid, and
whether or not contested before and adjudicated by a judicial or
administrative tribunal of competent jurisdiction.” We think
that, when the procedure described provides the taxpayer the
opportunity to object to the IRS’s proof of claim for an unpaid
Federal tax liability, the taxpayer is afforded an opportunity to
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011