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IN RE LILLY

Bankruptcy No. 90-00818. Adv. No. 95-6215.

194 B.R. 885 (1996)

In re Edlee Taft LILLY and Louella Lee Lilly, Debtors. Edlee Taft LILLY and Louella Lee Lilly, Plaintiffs, v. UNITED STATES of America, Internal Revenue Service, Defendants.

United States Bankruptcy Court, D. Idaho.

April 9, 1996.

Attorney(s) appearing for the Case

D. Blair Clark, Ringert Clark Chartered, Boise, Idaho, for plaintiffs.

Richard R. Ward, Trial Attorney, Tax Division, Department of Justice, Washington, DC, for Defendants.

MEMORANDUM OF DECISION

ALFRED C. HAGAN, Bankruptcy Judge.

In this adversary proceeding, the parties, Edlee Taft Lilly and Louella Lee Lilly (the "Debtors"), and the Internal Revenue Service of the United States (the "Service") have filed cross-motions for summary judgment.

FACTUAL BACKGROUND

The Service conducted an audit of the Debtors' income tax return for 1981. The Debtors appealed the Service's audit determination to the Service...

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