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I. The Parties’ Contentions.
Petitioner contends, for the first time in his brief, that
his tax liabilities for the years in issue have been discharged
under section 507 of the Bankruptcy Code. Petitioner contends as
follows:
The issues addressed in 11 U.S.C. � 507(a)(8)(A)(ii)
clearly state that if the tax was “assessed within 240
days, plus any time plus 30 days [sic] during which an
offer in compromise with respect to such tax that was
made within the 240 days after such assessment was
pending, before the date of the filing of the petition”
the taxes in question are not dischargeable.
In the instant case, NONE of the things addressed in
the above referenced code sections apply. The taxes
were, by the IRS’s own admission, assessed more than
240 days prior to the bankruptcy petition being filed
and there was no recent offer in compromise to take
into consideration.
Further, 11 U.S.C. �� 507 & 523 address the issue of
when returns, if required, are filed. Those sections
clearly state that an income tax debt is dischargeable
under [11] U.S.C. � 507(a)(8)(A)(i) if the tax
return was last due, including extensions, more than 3
years prior to the bankruptcy filing date. * * *
Obviously, since the latest year at issue is 1997 the 3
year time limit has run.
Petitioner also contends that respondent has no claim because
respondent failed to attend the creditors’ meeting on May 27,
2004, to claim the tax debt was not discharged.
Respondent contends that, under Magana v. Commissioner, 118
T.C. 488 (2002), we need not consider petitioner’s bankruptcy
discharge in our review for an abuse of discretion under section
6330(d)(1) because petitioner failed to raise the issue during
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