07 B 15979
Debtors objected to IRS proof of claim which asserted a claim based on taxes against them individually and taxes against husband's business, a corporation which had been involuntarily dissolved. Debtors claimed the IRS could not assess the business taxes against them individually because the statute of limitations had expired. The court held that the IRS could not hold the debtors responsible for corporate taxes since no corporation existed at the time, but that debtors were liable as individuals for the taxes since husband was an "employer" under the tax code. Moreover, since debtors had never included income from the operation of husband's business, the statute of limitations period had not begun to run because debtors had not filed sufficient information to constitute a "tax return." Debtors' objection to the entire proof of claim was sustained because the proof of claim did not accurately reflect debtors' tax liability.