[Code of Federal Regulations]
[Title 26, Volume 18]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR301.6231(c)-7]

[Page 197]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 301_PROCEDURE AND ADMINISTRATION--Table of Contents
 
                               Assessment
 
Sec. 301.6231(c)-7  Bankruptcy and receivership.

    (a) Bankruptcy. The treatment of items as partnership items with 
respect to a partner named as a debtor in a bankruptcy proceeding will 
interfere with the effective and efficient enforcement of the internal 
revenue laws. Accordingly, partnership items of such a partner arising 
in any partnership taxable year ending on or before the last day of the 
latest taxable year of the partner with respect to which the United 
States could file a claim for income tax due in the bankruptcy 
proceeding shall be treated as nonpartnership items as of the date the 
petition naming the partner as debtor is filed in bankruptcy.
    (b) Receivership. The treatment of items as partnership items with 
respect to a partner for whom a receiver has been appointed in any 
receivership proceeding before any court of the United States or of any 
State or the District of Columbia will interfere with the effective and 
efficient enforcement of the internal revenue laws. Accordingly, 
partnership items of such a partner arising in any partnership taxable 
year ending on or before the last day of the latest taxable year of the 
partner with respect to which the United States could file a claim for 
income tax due in the receivership proceeding shall be treated as 
nonpartnership items as of the date a receiver is appointed in any 
receivership proceeding before any court of the United States or of any 
State or the District of Columbia.

    (c) Effective date. This section is applicable to partnership 
taxable years beginning on or after October 4, 2001. For years beginning 
prior to October 4, 2001, see Sec. 301.6231(c)-7T contained in 26 CFR 
part 1, revised April 1, 2001.


[T.D. 8965, 66 FR 50561, Oct. 4, 2001]