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119-hr-5146119th CongressWALLET

Federal Receivership Fairness Act

Sponsored By: Representative LaHood, Darin [R-IL-16]

Introduced

Summary

This bill would let a court overseeing a receivership determine the amount and legality of federal taxes, fines, penalties, or additions to tax tied to that receivership. It creates a court-centered process for resolving tax claims connected to a receivership while keeping several timing and prior-adjudication limits.

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  • A receiver could ask the court to determine unpaid federal tax liabilities by filing a tax return and a determination request to a court-designated address. If the return is not fraudulent and the tax office does not select it for review within 60 days or finish an examination and notify the receiver within 180 days, payment of the return-disclosed tax can discharge the estate and related parties.
  • Federal, state, and local tax collectors would face a limited waiver of sovereign immunity in these receivership determinations when they assert claims in the case. After a court or agency determination, the appropriate government unit may assess the tax against the estate, the receiver, or successors as allowed by law.
  • The bill bars court determination of taxes already adjudicated before the receivership. Refund requests must wait until 120 days after the receiver asks for a refund or until the government decides, and ad valorem property tax contests remain subject to existing contest periods.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 0 costs, 2 mixed.

Courts could resolve taxes in receiverships

If enacted, courts that appoint receivers could decide federal tax debts and penalties in a receivership. They could not revisit taxes already decided, must wait up to 120 days on refund claims, and cannot revisit property taxes after the contest period closes. Receivers could file returns and request a ruling; liability would be discharged after payment if the return is honest. Key timelines: 60 days to pick an exam and 180 days to finish, unless the court allows more time. Government units could face money orders (no punitive damages), may move disputes to federal court, and other laws would be conformed to match these rules.

When these receivership tax rules start

If enacted, these rules would start on the signing date. They would apply to returns still open for audit or assessment then, and to returns filed after. This sets timing only and does not change tax rates or credits.

Sponsors & CoSponsors

Sponsor

LaHood, Darin [R-IL-16]

IL • R

Cosponsors

  • Rep. Beyer, Donald S. [D-VA-8]

    VA • D

    Sponsored 9/4/2025

  • Rep. Vindman, Eugene Simon [D-VA-7]

    VA • D

    Sponsored 9/15/2025

  • Rep. Gooden, Lance [R-TX-5]

    TX • R

    Sponsored 10/29/2026

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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