- 21 -
However, in McAuley v. United States, 525 F.2d at 1114, the
U.S Court of Appeals for the Ninth Circuit also held that where
section 6503(b) and a predecessor of subsection (h) both may
apply, subsection (b) controls and therefore that the collection
period of limitations will be suspended from the date a
bankruptcy petition was filed until 6 months after the first
creditors’ meeting and for an additional 6 months. McAuley v.
United States, supra.13
In McAuley, the Court of Appeals specifically rejected the
Government’s argument that the collection period of limitations
12(...continued)
remained on the collection period of limitations (3,652 less 1046
equals 2,606). The collection period of limitations was then
suspended until at least Sept. 17, 1998 (i.e., until the Mar. 17,
1998, date of discharge plus an additional 6 months). From Sept.
17, 1998, to Sept. 8, 2005, represents 2,547 days. Thus, after
respondent’s Sept. 8, 2005, NFTL filing the 10-year collection
period of limitations applicable to petitioners’ 1990 Federal
income taxes still had approximately 59 days to run (2,606 less
2,547 equals 59). The collection period of limitations then ran
for an additional 7 days until Sept. 15, 2005, when petitioners
requested their Appeals Office collection hearing. The 10-year
collection period of limitations has remained suspended ever
since Sept. 15, 2005, and, once this action is final, will have
approximately 52 days remaining (59 less 7 equals 52) plus
another 90 days, see secs. 6320(c) and 6330(e)(1), before it
expires.
13 McAuley v. United States, 525 F.2d 1108 (9th Cir. 1975),
construed an earlier version of sec. 6503(i), the predecessor to
sec. 6503(h). Sec. 6503(i) was in effect for bankruptcies
commenced prior to Oct. 1, 1979. Bankruptcy Tax Act of 1980,
Pub. L. 96-589, secs. 6(a), 7(e), 94 Stat. 3389, 3407-3412. On
Dec. 24, 1980, Congress amended sec. 6503(i) so that the language
of sec. 6503(i) became substantially identical to current sec.
6503(h). See also Omnibus Budget Reconciliation Act of 1990,
Pub. L. 101-508, sec. 11801(c)(20)A), 104 Stat. 1388, 1388-528.
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