Case Summary:
Debtors sought a determination that certain tax obligations were discharged as they had come due more than three years prior to the petition date. The IRS contended that the statutory “lookback” period should be extended due to the debtors’ prior chapter 13 case. The court concluded that the language of the statute which references the period in which “the stay of proceedings was in effect in a prior case” only authorizes an extension of the lookback period if the automatic stay in a prior case actually precluded the IRS from pursuing collection actions. The debtors’ plan had been confirmed before the taxes came due, and as a result the IRS was not “disabled” from collecting the taxes by the prior case. The taxes were discharged.
Statute/Rule References:
11 U.S.C. § 523(a)(1) -- Nondischargeability - Taxes
Key Terms:
Taxes - Nondischargeability