Bill > HR5146

This bill establishes new rules for determining tax liabilities in federal and state receivership proceedings. Specifically, the bill allows courts that appoint receivers to determine the amount or legality of federal taxes, fines, penalties, or tax additions, even if these were not previously assessed or contested. The bill provides a structured process for receivers to request tax determinations by submitting tax returns and requests to the appropriate governmental unit, with specific timelines for review. Courts can determine tax liabilities with some exceptions, such as matters already adjudicated or certain property tax issues. The bill also provides a mechanism for governmental units to examine and assess taxes, and includes provisions that effectively waive sovereign immunity in these proceedings. Importantly, the bill distinguishes between receivers and bankruptcy trustees, applying these new rules specifically to receivership cases. The legislation aims to create a more standardized and transparent process for resolving tax issues during receivership, offering clarity and protection for both the receivership estate and governmental tax authorities. The bill will apply to tax returns open for assessment at the time of enactment and to returns filed on or after that date.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/5146/all-info