2.10.a Tolling Of Interest And Penalties

• Jurisdiction: United States

a. Under pre-BAPCPA law

In Chapter 7 it usually makes no difference whether or not a proof of claim is filed by or on behalf of a taxing entity; where the assets are exempt and the tax claim unsecured and dischargeable, the tax itself will be discharged regardless of whether or not a proof of claim is filed. Since no security interest was perfected in the assets, the assets will be protected and cannot later be seized to pay the taxes. The policy of the IRS is not to file proofs of claim in no-asset cases.¹⁴³

On the other hand a nondischargeable tax claim will not be discharged, regardless of whether or not a proof of claim has been filed. 11 U.S.C. §523(a)(1) (exceptions to discharge) provides, in pertinent part, that a Chapter 7 discharge will not discharge any tax claim provided for in §507(a) (8) (priority, nondischargeable taxes), " ... whether or nor a claim for such tax was filed or allowed ..." All priority taxes are excepted from discharge and the failure of the...