The IRS has issued Internal Revenue Bulletin 2006-22, published on May 30, 2006. The Bulletin describes the steps a trustee or DIP must take to obtain a prompt determination of any unpaid tax liability incurred during bankruotcy administration.
The following are a few of the requirements —
* The request must be marked “Request for Prompt Determination,” and must be accompanied by an exact copy of the return (or returns) for a completed taxable period filed by the trustee with the service.
* a statement indicating that it is a request for prompt determination of tax liability and specifying the return type and tax period for each return for which the request is being filed;
* the name and location of the office where the return was filed;
* the name of the debtor;
* the debtor’s Social Security number, taxpayer identification number and/or entity identification number;
* the type of bankruptcy estate;
* the bankruptcy case number; and
* the court where the bankruptcy is pending.
These new regulations arise from new Code § 505(b), which discharges certain tax liabilities if the IRS fails to timely respond to the request. Based upon the language of the Code section, it appears that trustees and debtors should, as a matter of course, always request a prompt determination of unpaid tax liabilities.