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under the provisions of the Bankruptcy Code. See Bankruptcy Code
sec. 727(b); Woods v. Commissioner, T.C. Memo. 2006-38.
Generally, under Bankruptcy Code section 523(a)(1)(A) tax
liabilities of a debtor in bankruptcy that qualify as priority
claims under Bankruptcy Code section 507(a)(7) will be excepted
from discharge and will remain liabilities of the debtor in
bankruptcy after the bankruptcy proceeding is concluded.
Bankruptcy Code section 523(a)(1)(A) provides as follows:
§ 523. Exceptions to discharge.
(a) A discharge under section 727 * * * of this
title does not discharge an individual debtor from any
debt--
(1) for a tax * * *
(A) of the kind and for the periods specified in
section * * * 507(a)(7) of this title, whether or not a
claim for such tax was filed or allowed * * *
Under the cross-referenced Bankruptcy Code section
507(a)(7)(A)(i), Federal income taxes are to be treated as
priority claims (and therefore under Bankruptcy Code section
523(a)(1)(A) as excepted from discharge) where they relate to a
tax year of a debtor in bankruptcy which ended on or before the
date the related bankruptcy petition was filed and where the
Federal income tax return for the year was due to be filed with
respondent, with extensions, within the 3-year lookback period
immediately before the filing of the bankruptcy petition.
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Last modified: March 27, 2008