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would be suspended from a bankruptcy petition filing date until
close of the bankruptcy proceeding, stating that “such a rule is
capable of staying the period of limitations for unjustifiably
long periods.” McAuley v. United States, supra at 1112.
Although McAuley has not been overruled, language of former
section 6503(i) that the Court of Appeals in McAuley relied on
does not appear in the current version of section 6503(h)(2).14
As indicated supra pp. 19-20, more recently the Court of
Appeals, without mentioning McAuley, has acknowledged generally
14 The language of sec. 6503(i) relied on by the U.S. Court
of Appeals for the Ninth Circuit in McAuley v. United States, 525
F.2d at 1112, did not provide its own independent suspension of
the collection period of limitations. Rather, former sec.
6503(i)(2) cross-referenced other Code sections. The language of
sec. 6503(i)(2) that was construed in McAuley provided as
follows:
SEC. 6503. SUSPENSION OF RUNNING OF PERIOD
OF LIMITATION.
(i) Cross References.–-
For suspension in case of--
* * * * * * *
(2) Bankruptcy and receiverships,
see subch. B of ch. 70. [Subch. B of ch.
70 comprised secs. 6871, 6872, and
6873.]
As the above language indicates, sec. 6503(i), as applicable
in McAuley, incorporated sec. 6503(b) only via a circuitous
reference, cross-referencing secs. 6871, 6872, and 6873. Sec.
6873(b)(1) in turn referenced sec. 6503(b) for the period during
which the running of the collection period of limitations was
suspended.
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Last modified: March 27, 2008