26 U.S.C. § 6871: Claims for income, estate…

Summary

When a receiver is put in charge of a taxpayer’s property by a federal, state, or D.C. court, the IRS can immediately assess any tax shortfall the Secretary finds for taxes under subtitle A or B or chapters 41, 42, 43, or 44. That immediate assessment includes interest and any extra amounts the law requires, and it can happen even though section 6213(a) normally stops immediate assessments, as long as the tax shortfall has not already been properly assessed. The same immediate assessment rule applies in a case under title 11 (bankruptcy) for the debtor’s estate, and for the debtor if the tax liability has been finally decided in the bankruptcy case (res judicata — a final, binding decision). Claims for the tax, interest, and other amounts can be brought to the court handling the receivership or the bankruptcy case even if the Tax Court is also considering the issue. But in a receivership, no new petition to the Tax Court to redecide the deficiency may be filed after the receiver is appointed.

Title 26, §6871

Internal Revenue Code, Source: USLM XML via OLRC

(a)Immediate assessment in receivership proceedings

On the appointment of a receiver for the taxpayer in any receivership proceeding before any court of the United States or of any State or of the District of Columbia, any deficiency (together with all interest, additional amounts, and additions to the tax provided by law) determined by the Secretary in respect of a tax imposed by subtitle A or B or by chapter 41, 42, 43, or 44 on such taxpayer may, despite the restrictions imposed by section 6213(a) on assessments, be immediately assessed if such deficiency has not theretofore been assessed in accordance with law.

(b)Immediate assessment with respect to certain title 11 cases

Any deficiency (together with all interest, additional amounts, and additions to the tax provided by law) determined by the Secretary in respect of a tax imposed by subtitle A or B or by chapter 41, 42, 43, or 44 on—

(1)the debtor’s estate in a case under title 11 of the United States Code, or

(2)the debtor, but only if liability for such tax has become res judicata pursuant to a determination in a case under title 11 of the United States Code,

may, despite the restrictions imposed by section 6213(a) on assessments, be immediately assessed if such deficiency has not theretofore been assessed in accordance with law.

(c)Claim filed despite pendency of tax court proceedings

In the case of a tax imposed by subtitle A or B or by chapter 41, 42, 43, or 44—

(1)claims for the deficiency and for interest, additional amounts, and additions to the tax may be presented, for adjudication in accordance with law, to the court before which the receivership proceeding (or the case under title 11 of the United States Code) is pending, despite the pendency of proceedings for the redetermination of the deficiency pursuant to a petition to the Tax Court; but

(2)in the case of a receivership proceeding, no petition for any such redetermination shall be filed with the Tax Court after the appointment of the receiver.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1989—Pub. L. 101–239 substituted “or 44” for “44, or 45” in subsecs. (a), (b), and (c). 1980—Subsec. (a). Pub. L. 96–589 amended subsec. (a) generally, substituting reference to appointment of a receiver for the taxpayer in any receivership proceedings, for reference to adjudication of bankruptcy of a taxpayer in a liquidating proceeding, the filing or the approval of a petition of or the approval of a petition against any taxpayer in any other bankruptcy proceeding, or the appointment of a receiver for any taxpayer in any receivership proceeding, and inserted reference to chapters 41, 42, 43, 44, and 45. Subsecs. (b), (c). Pub. L. 96–589 added subsec. (b), redesignated former subsec. (b) as (c), inserted reference to chapters 41, 42, 43, 44, and 45, and struck out reference to bankruptcy proceedings. 1976—Subsec. (a). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”. Pub. L. 94–455, § 1906(c)(1), struck out “or Territory” after “any State”. 1958—Subsec. (a). Pub. L. 85–866, § 88(a), substituted “the filing or (where approval is required by the Bankruptcy Act) the approval of a petition of, or the approval of a petition against, any taxpayer” for “the approval of a petition of, or against, any taxpayer”. Subsec. (b). Pub. L. 85–866, § 88(b), substituted “the filing or (where approval is required by the Bankruptcy Act) the approval of a petition of, or the approval of a petition against, any taxpayer” for “approval of the petition”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1980 AmendmentAmendment by Pub. L. 96–589 effective Oct. 1, 1979, but not applicable to proceedings under Title 11, Bankruptcy, commenced before Oct. 1, 1979, see section 7(e) of Pub. L. 96–589, set out as a note under section 108 of this title.

Effective Date

of 1976 AmendmentAmendment by Pub. L. 94–455 effective on first day of first month which begins more than ninety days after Oct. 4, 1976, see section 1906(d)(1) of Pub. L. 94–455, set out as a note under section 6013 of this title.

Effective Date

of 1958 AmendmentAmendment by Pub. L. 85–866 effective Aug. 17, 1954, see section 1(c)(2) of Pub. L. 85–866, set out as a note under section 165 of this title.

§6871 Claims for Income, Estate, Gift, and Certain Excise Taxes in Receivership Proceedings, Etc.

Summary

Title 26, §6871

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Effective Date

Citations & Metadata