Federal Receivership Fairness Act

This bill would let a federal court that appoints a receiver decide the amount or legality of federal taxes, penalties, and additions owed by the receivership estate, with some exceptions, such as taxes already decided by a court before the receivership began. A receiver could file a tax return and ask the IRS for a determination of unpaid taxes. If the IRS does not pick the return for examination within 60 days, or does not finish an examination within 180 days, paying the tax shown would release the estate and related parties from further liability for that tax, unless the return is fraudulent or contains a material misrepresentation. The bill would waive the federal government's sovereign immunity for these matters, allow court orders and money judgments against the IRS (but not punitive damages), and require federal tax questions in state receivership cases to be decided by the local U.S. District Court. Bankruptcy trustees and executors of estates would not count as receivers under the bill.

Full text and official record on Congress.gov

Sponsors

• Todd Young Republican sponsor
• 1 cosponsors