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The creation of §108(i) of the Internal Revenue Code (IRC), through the enactment of §1231 of the American Recovery and Reinvestment Tax Act of 2009 (PL 111-5, 123 Stat.
On June 16, 2008, the Supreme Court resolved the split in authority among appellate courts concerning whether §1146(a) exempts a transfer from the stamp tax when the transfer occurs prior to the confirmation of a plan under chapter 11. Florida Dept. of Revenue v. Piccadilly Cafeterias Inc., 2008 WL 2404077 (U.S. June 16, 2008), 76 USLW 4471.
The treatment of discharged mortgage indebtedness under the Internal Revenue Code (IRC) changed significantly with the enactment of the Mortgage Forgiveness Debt Relief Act of 2007 (MFDRA). The MFDRA, by adding subsections (a)(1)(E) and (h) to IRC §108, allows the exclusion from gross income of discharged qualified principal residence indebtedness.
John Tittle, the co-chair of ABI’s Bankruptcy Taxation Committee, is a principal of NachmanHaysBrownstein Inc. in Dallas, where he heads the firm’s practice in the Southwest. Mr. Tittle has almost 30 years of bankruptcy advisory, restructuring and financial consulting experience.
To obtain confirmation, a chapter 13 debtor must file all tax returns for all taxable periods ending during the four-year period before the petition date, even if the return is not yet due under the Internal Revenue Code.
Recently, a bankruptcy court for the Eastern District of Wisconsin upheld the trustee’s objection to a proposed chapter 13 plan that subtracted the tax withholdings in calculating the debtor’s disposable income (In re Balcerowski, 353 B.R. 581 (Bankr. E.D. Wis. 2006)).
Consistent with the Internal Revenue Service’s (IRS) broader strategy to reduce the tax gap, the IRS has gradually stepped up activity in the bankruptcy program during the last 18 months – in part by increasing compliance and enforcement actions to better protect the public interest.
Section 321 of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, Pub. L. No. 109-8, 119 Stat 23 (2005), amended the Bankruptcy Code to add a new §1115, which governs chapter 11 cases filed by individuals on or after Oct. 17, 2005.
