§ 6872. Suspension of period on assessment

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1954

   Aug. 16, 1954, ch. 736, 68A Stat. 838 · 68A Stat. 838

   Enacted · 26 U.S.C. § 6872

   Aug. 16, 1954, ch. 736, 68A Stat. 838

   Source evidence

   Code source credit
   Aug. 16, 1954, ch. 736, 68A Stat. 838

2. 1976

   Pub. L. 94–455 title XIX § 1906(b)(13)(A) · 90 Stat. 1520

   Struck · 26 U.S.C. § 6872

   Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing

   Source evidence

   Code amendment note
   Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing.

   Enacted provision · exact public law section
   (A) The Internal Revenue Code of 1954, as amended by this Act, is amended by striking out “Secretary or his delegate” each place it appears and inserting in lieu thereof “Secretary”.

3. 1980

   Pub. L. 96–589 § 6 · 94 Stat. 3389

   Substituted · 26 U.S.C. § 6872

   Pub. L. 96–589 substituted “any case under title 11 of the United States Code” for “any proceeding under the Bankruptcy Act”

   Source evidence

   Code amendment note
   Pub. L. 96–589 substituted “any case under title 11 of the United States Code” for “any proceeding under the Bankruptcy Act”.

   Enacted provision · exact public law section
   SEC. 6. CHANGES IN TAX PROCEDURES. (a) Suspension of Running of Period of Limitations During Title 11 Cases.— Section 6503 (relating to suspension of running of 11 USC 101 et seq. 26 USC 6503. period of limitation) is amended by redesignating subsection (i) as subsection (j) and by inserting after subsection (h) the following new subsection: “(i) Cases Under Title 11 of the United States Code.— The running of the period of limitations provided in section 6501 or 6502 on the making of assessments or collection shall, in a case under title 11 of the United States Code, be suspended for the period during which the Secretary is prohibited by reason of such case from making the assessment or from collecting and— “(1) for assessment, 60 days thereafter, and “(2) for collection, 6 months thereafter.” (b) Coordination of Deficiency Procedures With Title 11 Cases.— (1) In general.— Section 6213 (relating to restrictions 26 USC 6213. applicable to deficiencies; petition to Tax Court) is amended by redesignating subsections (f) and (g) as subsections (g) and (h), respectively, and by inserting after subsection (e) the following new subsection: “(f) Coordination With Title 11.— “(1) Suspension of running of period for filing petition in title 11 cases.— In any case under title 11 of the United States Code, the running of the time prescribed by subsection (a) for filing a petition in the Tax Court with respect to any deficiency shall be suspended for the period during which the debtor is prohibited by reason of such case from filing a petition in the Tax Court with respect to such deficiency, and for 60 days thereafter. “(2) Certain action not taken into account.— For purposes of the second and third sentences of subsection (a), the filing of a proof of claim or request for payment (or the taking of any other action) in a case under title 11 of the United States Code shall not be treated as action prohibited by such second sentence.” (2) Clerical amendment.— Subsection (d) of section 6404 26 USC 6404. (relating to abatements) is amended by striking out “section 6213(f)(2)(A)” and inserting in lieu thereof “section 6213(g)(2)(A)”. Supra. (c) Trustee of Debtor’s Estate May Intervene in Tax Court Proceeding.— (1) In general.— Part II of subchapter C of chapter 76 (relating to Tax Court procedure) is amended by redesignating section 7464 as section 7465 and by inserting after section 7463 the following new section: “SEC. 7464. INTERVENTION BY TRUSTEE OF DEBTOR’S ESTATE. “The trustee of the debtor’s estate in any case under title 11 of the United States Code may intervene, on behalf of the debtor’s estate, in any proceeding before the Tax Court to which the debtor is a party.” (2) Clerical amendment.— The table of sections for part II of subchapter C of chapter 76 is amended by striking out the item relating to section 7464 and by inserting in lieu thereof the following: “Sec. 7464. Intervention by trustee of debtor’s estate. “Sec. 7465. Provisions of special application to transferees.” (d) Cross References to Tax Determinations in Title 11 Cases.— (1) Amendment of section 7430.— Section 7430 (relating to cross references) is amended by striking out paragraphs (1), (2), (3), and (4) and inserting in lieu thereof the following new paragraph: “(1) For determination of amount of any tax, additions to tax, etc., in title 11 cases, see section 505 of title 11 of the United States Code.” (2) Amendment of section 6212.— Paragraph (2) of section 6212(c) (relating to cross references) is amended by adding at the end thereof the following new sentence: “For provisions allowing determination of tax in title 11 cases, see section 505(a) of title 11 of the United States Code.” (3) Amendment of section 6512.— Section 6512 (relating to limitations in case of petition to Tax Court) is amended by adding at the end thereof the following new subsection: “(c) Cross Reference.— “For provisions allowing determination of tax in title 11 cases, see section 505(a) of title 11 of the United States Code.” (4) Amendment of section 6532.— Subsection (a) of section 6532 (relating to periods of limitations on suits) is amended by adding at the end thereof the following new paragraph: “(5) Cross reference.— “For substitution of 120-day period for the 6-month period contained in paragraph (1) in a title 11 case, see section 505(a)(2) of title II of the United States Code.” (e) Relief From Certain Penalties in Title 11 Cases— (1) In general.— Subchapter A of chapter 68 (relating to additions to the tax and additional amounts) is amended by inserting after section 6657 the following new section: “SEC. 6658. COORDINATION WITH TITLE 11. “(a) Certain Failures To Pay Tax.— No addition to the tax shall be made under section 6651, 6654, or 6655 for failure to make timely payment of tax with respect to a period during which a case is 11 USC 101 et seq. pending under title 11 of the United States Code— “(1) if such tax was incurred by the estate and the failure occurred pursuant to an order of the court finding probable insufficiency of funds of the estate to pay administrative expenses, or “(2) if— “(A) such tax was incurred by the debtor before the earlier of the order for relief or (in the involuntary case) the appointment of a trustee, and “(B) (i) the petition was filed before the due date prescribed by law (including extensions) for filing a return of such tax, or “(ii) the date for making the addition to the tax occurs on or after the day on which the petition was filed. “(b) Exception for Collected Taxes.— Subsection (a) shall not apply to any liability for an addition to the tax which arises from the failure to pay or deposit a tax withheld or collected from others and required to be paid to the United States.” (2) Clerical amendment.— The table of sections for subchapter A of chapter 68 is amended by inserting after the item relating to section 6657 the following: “Sec. 6658. Coordination with title 11.” (f) Credit Against Federal Unemployment Tax Not Reduced in Certain Cases.— Subsection (a) of section 3302 (relating to credits 26 USC 3302. against unemployment tax) is amended by adding at the end thereof the following new paragraph: “(5) In the case of wages paid by the trustee of an estate under title 11 of the United States Code, if the failure to pay contributions 11 USC 101 et seq. on time was without fault by the trustee, paragraph (3) shall be applied by substituting ‘100 percent’ for ‘90 percent’.” (g) Removal of Provision for Immediate Assessment in Certain Title 11 Cases.— (1) In general.— Section 6871 (relating to claims for income, 26 USC 6871. estate, and gift taxes in bankruptcy and receivership proceedings) is amended to read as follows: “SEC. 6871. CLAIMS FOR INCOME, ESTATE. GIFT, AND CERTAIN EXCISE TAXES IN RECEIVERSHIP PROCEEDINGS. ETC. “(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, 44, or 45 on such taxpayer may, despite 26 USC 1, 2001, 4911, 4940, 4971, 4981 ante. p. 230. 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 41,42,43,44, or 45 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, 44, or 45— “(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.” (2) Amendment of section 6873.— Subsection (a) of section 26 USC 6873. 6873 (relating to unpaid claims) is amended by striking out “or any proceeding under the Bankruptcy Act”. (3) Clerical amendments.— (A) The table of sections for subchapter B of chapter 70 is amended by striking out the item relating to section 6871 and inserting in lieu thereof the following: “Sec. 6871. Claims for income, estate, gift, and certain excise taxes in receivership proceedings, etc.” (B) The heading of subchapter B of chapter 70 is amended to read as follows: “Subchapter B— Receiverships, Etc.” (C) The item relating to subchapter B in the table of subchapters for chapter 70 is amended to read as follows: “Subchapter B . Receiverships, etc.” (D) The heading of chapter 70 is amended to read as follows: “CHAPTER 70— JEOPARDY, RECEIVERSHIPS. ETC.” (E) The item relating to chapter 70 in the table of chapters for subtitle F is amended to read as follows: “Chapter 70 . Jeopardy, receiverships, etc.” (h) Repeal of Section 1018.— (1) In general.— Section 1018 (relating to adjustment of capital structure before September 22, 1938) is hereby repealed. (2) Clerical amendment.— The table of sections for part II of subchapter O of chapter 1 is amended by striking out the item relating to section 1018. (i) Technical and Conforming Amendments.— (1) Subsection (a) of section 128 (relating to cross references) is amended by striking out paragraph (1) and by redesignating paragraphs (2) through (9) as paragraphs (1) through (8), respectively. (2) Subsection (c) of section 354 (relating to certain railroad reorganizations) is amended by striking out “approved by the Interstate Commerce Commission under section 77 of the Bankruptcy Act, or” and inserting in lieu thereof “confirmed under section 1173 of title 11 of the United States Code, or approved by the Interstate Commerce Commission”. (3) Paragraph (5) of section 422(c) (relating to certain transfers by insolvent individuals) is amended by striking out “under the Bankruptcy Act” and inserting in lieu thereof “under title 11 of the United States Code”. (4) Section 1023 (relating to cross references) is amended by striking out paragraph (2) and by redesignating paragraph (3) as paragraph (2). (5) Paragraph (3) of section 6012(b) (relating to receivers, trustees, and assignees for corporations) is amended by striking out “trustee in bankruptcy” and inserting in lieu thereof “trustee in a case under title 11 of the United States Code”. (6) Section 6036 (relating to notice of qualification as executor or receiver) is amended by striking out “trustee in bankruptcy” and inserting in lieu thereof “trustee in a case under title 11 of the United States Code”. (7) Paragraph (2) of section 6155(b) (relating to cross references) is amended by striking out “bankruptcy or”. (8) Subsection (c) of section 6161 (relating to claims in bankruptcy or receivership proceedings) is amended— (A) by striking out “in bankruptcy or receivership proceedings” and 11 USC 101 et seq. inserting in lieu thereof “in cases under title 11 of the United States Code or in receivership proceedings”, and (B) by striking out “Bankruptcy or Receivership Proceedings” in the subsection heading and inserting in lieu thereof “Cases Under Title 11 of the United States Code or in Receivership Proceedings”. (9) Paragraph (1) of section 6216 (relating to cross references) is 26 USC 6216. amended to read as follows: “(1) For procedures relating to receivership proceedings, see subchapter B of chapter 70.” (10) (A) Section 6326 (relating to cross references) is amended by 26 USC 6326. striking out paragraphs (2), (3), (4), and (5) and inserting in lieu thereof the following: “(2) For exclusion of tax liability from discharge in cases under title 11 of the United States Code, see section 523 of such title 11. “(3) For recognition of tax liens in cases under title 11 of the United States Code, see sections 545 and 724 of such title 11. “(4) For collection of taxes in connection with plans for individuals with regular income in cases under title 11 of the United States Code, see section 1328 of such title 11.” (B) Section 6326 is amended by redesignating paragraphs (6) and (7) as paragraphs (5) and (6), respectively. (11) Paragraph (2) of section 6503(i) (relating to cross references) 26 USC 6503. is amended to read as follows: “(2) Receiverships, see subchapter B of chapter 70.” (12) Section 6872 (relating to suspension period on assessment) 26 USC 6872. is amended by striking out “any proceeding under the Bankruptcy Act” and by inserting in lieu thereof “any case under title 11 of the United States Code”. (13) Section 7430 (as amended by this Act) is amended by 26 USC 7430. inserting after paragraph (1) the following new paragraphs: “(2) For exclusion of tax liability from discharge in cases under title 11 of the United States Code, see section 523 of such title 11. “(3) For recognition of tax liens in cases under title 11 of the United States Code, see sections 545 and 724 of such title 11. “(4) For collection of taxes in connection with plans for individuals with regular income in cases under title 11 of the United States Code, see section 1328 of such title 11.” (14) Paragraph (1) of section 7508(d) is amended by striking out 26 USC 7508. “bankruptcy and receiverships” in the paragraph heading and inserting in lieu thereof “cases under title 11 of the united states code and receiverships”.

   Effective date note
   Amendment 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.

2 of 3 references resolved to an enrolled provision · 1 partial