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IRS Releases Guidance on Assessment Impact of Bankruptcy Filing

Sharon Edmondson, Washington Legislative Team Member | December 15, 2015
On December 4 the IRS’s Office of Chief Counsel released informal legal advice addressing the assessment impact of a taxpayer’s bankruptcy filing.

According to the Chief Counsel’s office, a taxpayer’s bankruptcy filing on the final day for petitioning in the US Tax Court to contest an IRS deficiency determination suspends the period for filing with the Tax Court under IRC §6213(f). This prevents a tax assessment as the period has not expired.
According to the IRS, under §6213(a) a taxpayer’s 90 day period to petition the Tax Court and a tax assessment can’t be made during this period. If the last day of the 90 day period falls “on a weekend and the next Monday is not a holiday in the District of Columbia,” then the taxpayer has until that Monday to file a timely petition with the Tax Court. As a result, if a taxpayer filed a bankruptcy petition on that Monday, the taxpayer’s 90 day period is suspended due to §6213(f).

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