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to establish the specific information she was given. As much as
we sympathize with the unfortunate, even tragic, string of events
that befell the Banderas household, we cannot accept a test so
nebulous as that proposed by petitioner. To do so would
essentially eviscerate the reasonable belief standard.
“Eventually” is simply too open-ended to place any meaningful or
administratively workable limits on qualification for relief.
The Court concludes that a reasonable belief that taxes
would be paid must at minimum incorporate a belief that funds
would be on hand within a reasonably prompt period of time.5 As
just indicated, petitioner has failed to make such a showing
here. Furthermore, because petitioner has never identified any
timeframe, the Court need not probe the contours of the how soon
question, or even whether the standard should be limited to
5 Taxpayers are required to pay their taxes when due. A
delay in payment not authorized by statute renders the Government
an involuntary creditor without security or other assurance that
the tax and interest thereon will be paid. When tax or interest
due is not paid, the burdens of Government are transferred to
other taxpayers, including those of future generations. Where
all funds needed to pay the taxes for a year of bankruptcy will
be trapped in the bankruptcy estate or for any other reason, the
bankrupt taxpayer and spouse may, at the taxpayer’s or spouse’s
option, elect to close their taxable years effective on the day
before the bankruptcy case was commenced. Sec. 1398(d)(2). This
election creates 2 short taxable years, the tax liability for the
first of which is included as a claim against the debtor’s estate
and is payable from the estate. Id.; see also sec. 6161(c)
(regarding authorized extensions of time to pay).
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Last modified: November 10, 2007