Part II of this Note establishes the background of the automatic stay which exists in bankruptcy law under 11 U.S.C. § 362(a)(1). It examines the purpose of the automatic stay and how its scope is very broad and applicable to many different proceedings. Further, this part discusses how the automatic stay applies to tax deficiencies, and it examines the federal circuit court split regarding the applicability of the automatic stay to appeals from Tax Court. Part III presents a factual and procedural history of the most recent circuit court decision regarding this matter, Schoppe v. Commissioner, which the Tenth Circuit decided. It also presents the issues that the circuits need to resolve to determine whether the automatic stay provision applies to appeals from Tax Court decisions. Part IV analyzes how the Tenth Circuit incorrectly decided Schoppe because it failed to understand what is meant by “against the debtor.” It also demonstrates why 11 U.S.C. § 362(a)(1) should be applied to stay appeals from Tax Court because Tax Court is merely a continuation of IRS administrative proceedings that are brought against the debtor. This part also argues that the broad language of 11 U.S.C. § 362(a)(6) of the automatic stay provision could be applicable to stay appeals from Tax Court. It also contends that the automatic stay provision should be applied to appeals from Tax Court because it gives the debtor a “breathing spell,” satisfying the legislative intent and the purpose of the statute. Lastly, Part V provides a conclusion to this Note.

Included in

Tax Law Commons