Alexander Bernard Wathen, Esq., 2021 T. C. Memo. 100, filed 8/11/21*, proves once again the truth of the old marching cadence. Alex is a BR practitioner with a lot of cases but no records of his own. Alex also has a discharged Chapter 13 plan of his own, which he claims means “res judicata, collateral estoppel, and judicial estoppel bar respondent from asserting these deficiencies, additions to tax, and penalties.” 2021 T. C. Memo. 100, at p. 2, footnote 2.

Unfortunately, Alex raises these arguments too late for Rule 121 or standing pretrial order, but Judge Pugh deals with them.

“…petitioner was granted a discharge of debts under 11 U.S.C. sec. 1328(a). The order of discharge noted that “[s]ome debts are not discharged” and listed as ‘[e]xamples of debts that are not discharged’ debts for taxes specified in 11 U.S.C. sec. 523(a)(1)(B). There is no indication that the IRS agreed to waive any of its rights with respect to tax debts excepted from discharge under title 11 of the United States Code (Bankruptcy Code).” 2021 T. C. Memo. 100, at p. 6.

Bankruptcy Court never dealt with, much less disposed of, the issues raised by the SNOD which IRS bestowed upon Alex.

If this sounds familiar, see my blogpost “Ain’t No Discharge On The Ground – Part Deux,” 3/28/19. Judge Pugh tipped off Alex on the trial.

Alex’s bankruptcy proceeding never determined what tax he owed, only that the plan proposed might pay some dischargeable debts. Bankruptcy Court never exercised its jurisdiction to determine Alex’s actual tax.

I will pass over Alex’s testimony on the trial. It’s not exactly what one likes to hear. See 2021 T. C. memo. 100, at p. 20, footnote 6.

*Alexander Bernard Wathen T. C. Memo. 2021-100