The Basics of Discharging Taxes in Bankruptcy after BAPCPA
by Stuart Larsen
Kahn Kleinman, LPA; Cleveland
BAPCPA dramatically altered the discharge of taxes in chapter 13 and chapter 11 when it killed the so-called “super discharge.” Tax debtors can no longer discharge tax debts in a chapter 13 case that they cannot discharge in chapter 7. Because chapter 7’s tax discharge provisions are now equally applicable to chapter 13 and chapter 11 cases, they may be of renewed interest to practitioners.
New IRS Whistleblower Law Creates Potential Asset Bankruptcy
by Robert E. McKenzie
Arnstein & Lehr LLP; Chicago
Barry A. Chatz
Arnstein & Lehr LLP; Chicago
A little-noticed provision of the Tax Relief and Health Care Act of 2006 (effective Dec. 20, 2006) has created a rewards program for individuals informing the IRS of large tax omissions. The IRS is gearing up for an influx of informant claims: IRS managers report that whistleblowers have already provided tips involving hundreds of millions of dollars in tax underpayments.
Income Tax Consequences of Common Commercial Bankruptcy Transactions
; Nashua, NH
Keith D. Lowey, CPA
Verdolino & Lowey, P.C.; Foxboro, MA
Richard P. Finkel, CPA, CFE, CIRA
Blum, Shapiro & Co., P.C.; West Hartford, CT
Hon. Robert E. Gerber
U.S. Bankruptcy Court, Southern District of New York
Individuals often have to pay taxes when they can least afford to. A little planning and follow through can mean all the
difference to them. A new taxpaying entity is created at the commencement date of a Title 11 proceeding under chapters 7 and 11. Tax attributes go to the new entity as of the end of the previous tax year unless the debtor makes an election to create a short year up to the date of the bankruptcy filing.
2007 Winter Leadership Conference Agenda
The committee will jointly present “Tax Issues in Consumer Bankruptcy” with the Consumer Committee. Speakers will be Ken C. Weil (Seattle), Henry E. Hildebrand (Lassiter, Tidwell, Davis, Keller & Hogan PLLC; Nashville, Tenn.) and Willis Douglas (U.S. DOJ, C.D. Calif.).