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Section 6503(b) provides that the collection period of
limitations is suspended for the period of time in which a
taxpayer’s assets are in the custody or control of any court plus
an additional 6 months. Section 6503(b) provides as follows:
SEC. 6503. SUSPENSION OF RUNNING OF PERIOD OF
LIMITATION.
(b) Assets of Taxpayer in Control or Custody of
Court.--The period of limitations on collection after
assessment prescribed in section 6502 shall be
suspended for the period the assets of the taxpayer are
in the control or custody of the court in any
proceeding before any court of the United States or of
any State or of the District of Columbia, and for
6 months thereafter.
In McAuley v. United States, 525 F.2d 1108, 1114 (9th Cir.
1975), the U.S. Court of Appeals for the Ninth Circuit
interpreted the above language (i.e., to have “assets * * * in
the control or custody of” a court) and held that under section
6503(b) the 10-year Federal income tax collection period of
limitations is suspended from the date a bankruptcy petition is
filed only until 6 months after the first creditors’ meeting and
for an additional 6 months. See also United States v. Breshears,
698 F.2d 394 (9th Cir. 1983).10
10 We note that other United States Courts of Appeals and
District Courts have construed sec. 6503(b) differently from the
opinion of the U.S. Court of Appeals for the Ninth Circuit in
McAuley v. United States, 525 F.2d 1108 (9th Cir. 1975), and
United States v. Breshears, 698 F.2d 394 (9th Cir. 1983). See
United States v. Verlinsky, 459 F.2d 1085, 1088 (5th Cir. 1972)
(continued...)
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