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authority to credit overpayments to any liability for any tax
year and, therefore, was proper.
4. Violation of Automatic Bankruptcy Stay
Petitioner asserts that the bankruptcy court discharged his
1994 tax liability when it granted petitioner a discharge on
November 13, 2002, and that respondent’s application of the
$3,377 from petitioner’s 1999 account to his 1994 tax liability
violated the automatic stay imposed under 11 U.S.C. sec. 362.
We have jurisdiction in this levy proceeding to determine whether
petitioner’s unpaid liabilities were discharged in bankruptcy.
See Washington v. Commissioner, 120 T.C. 114 (2003).
The Certificates of Official Record for petitioner’s 1994
and 1999 tax years reflect that the $3,377 overpayment from
petitioner’s 1999 account was applied to petitioner’s outstanding
1994 tax liability in October 2001. Petitioner did not file his
bankruptcy petition until July 30, 2002. Thus, there could not
have been a violation of the automatic bankruptcy stay before the
filing of a bankruptcy petition. We conclude, therefore, that
respondent’s application of the funds from petitioner’s 1999
overpayment was permitted. Moreover, since the funds were
applied to petitioner’s 1994 tax liability before petitioner
filed for bankruptcy, petitioner was no longer liable for that
portion of the 1994 liability when he filed for bankruptcy.
Consequently, any of petitioner’s 1994 tax liability discharged
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