IRS Bankruptcy Issues in Subchapter V of Chapter 11 Explained
This content discusses the IRS bankruptcy issues in Subchapter V of Chapter 11, focusing on tax return filing requirements and payment of post-petition taxes under both standard Chapter 11 and Subchapter V. The responsibilities of debtors, trustees, and governmental units, as well as the compliance requirements for confirming a plan, are detailed.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
IRS BANKRUPTCY ISSUES IN SUBCHAPTER V OF CHAPTER 11 Eamonn O Hagan Assistant U.S. Attorney, Senior Bankruptcy Counsel District of New Jersey
Serving IRS in Bankruptcy United States Attorney United States Attorney Peter Rodino Federal Building 970 Broad Street, Suite 700 Newark, New Jersey 07102 United States Attorney General Attorney General United States Department of Justice Ben Franklin Station P.O. Box 683 Washington, DC 20044 Internal Revenue Service Internal Revenue Service P.O. Box 7346 Philadelphia, PA 19101-7346 Overnight mail should be directed to: Internal Revenue Service 2970 Market Street Mail Stop 5-Q30.133 Philadelphia, PA 19104-5016
Tax Return Filing Requirements (Standard Ch 11) Under BOTH standard chapter 11 AND subchapter V, Plan cannot be confirmed unless ALL prepetition AND post-petition returns are filed: 11 U.S.C. 1106(a)(6) ( A trustee shall . . . for any year for which the debtor has not filed a tax return required by law, furnish, without personal liability, such information as may be required by the governmental unit with which such tax return was to be filed . . . ) 11 U.S.C. 1107(a) ( [A] debtor in possession . . . shall perform all the functions and duties . . . of a trustee serving in a case under this chapter ) 11 U.S.C. 1112(b)(4)(I) (requiring debtor to file post-petition tax returns or face for dismissal or conversion of case) 11 U.S.C. 1129(a)(2) (chapter 11 plan cannot be confirmed unless [t]he proponent complies with the applicable provisions of this title. )
Tax Return Filing Requirements (Subchapter V) Under BOTH standard chapter 11 AND subchapter V, Plan cannot be confirmed unless ALL prepetition AND post-petition returns are filed: 11 U.S.C. 1184 (requiring small business debtors under Subchapter V to comply with the requirements of section 1106(a)(6) of the Bankruptcy Code) 11 U.S.C. 1191(a) (providing that requirements of section 1112 apply in Subchapter V) 11 U.S.C. 1191(a) (applying Bankruptcy Code section 1129(a)(2) s Code compliance confirmation requirement to cases under Subchapter V)
Payment of Post-Petition Taxes (Standard Ch 11) Under BOTH standard chapter 11 AND subchapter V, Plan cannot be confirmed if debtor fails to pay post-petition tax liabilities: 11 U.S.C. 1112(b)(4)(I) (requiring debtors to timely pay taxes owed after the date of the order for relief or face conversion or dismissal of case) 11 U.S.C. 1129(a)(2) (providing that chapter 11 plan cannot be confirmed unless [t]he proponent complies with the applicable provisions of this title. )
Payment of Post-Petition Taxes (Subchapter V) Under BOTH standard chapter 11 AND subchapter V, Plan cannot be confirmed if debtor fails to pay post-petition tax liabilities: 11 U.S.C. 1191(a) (providing that requirements of section 1112 apply in Subchapter V) 11 U.S.C. 1191(a) (applying Bankruptcy Code section 1129(a)(2) s Code compliance confirmation requirement to cases under Subchapter V)
Questions on IRS-Related Matters? Eamonn O Hagan Assistant U.S. Attorney, Senior Bankruptcy Counsel U.S. Attorney s Office District of New Jersey 970 Broad Street Newark, New Jersey 07102 (973) 645-2874 eamonn.ohagan@usdoj.gov
