[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: 26CFR301.6871(a)-2]

[Page 469]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 301_PROCEDURE AND ADMINISTRATION--Table of Contents
 
                 Jeopardy, Bankruptcy, and Receiverships
 
Sec. 301.6871(a)-2  Collection of assessed taxes in bankruptcy and 
receivership proceedings.

    (a) During a proceeding under the Bankruptcy Act (11 U.S.C. chapters 
1-14) or a receivership proceeding in either a Federal or State court, 
generally the assets of the taxpayer are under the control of the court 
in which such proceeding is pending, and the collection of taxes cannot 
be made by levying upon such assets. However, any assets which under 
applicable provisions of law are not under the control of the court may 
be subject to levy. See paragraph (b) of this section and Sec. 
301.6871(b)-1 with respect to claims for such taxes. See section 6873 
with respect to collection of unpaid claims.
    (b) District directors should, promptly after ascertaining the 
existence of any outstanding liability against a taxpayer in any 
proceeding under the Bankruptcy Act or in any receivership proceeding, 
and in any event within the time limited by the appropriate provisions 
of the Bankruptcy Act, or by the appropriate orders of the court in 
which such proceeding is pending, file proof of claim covering such 
liability in the court in which such proceeding is pending. Such proof 
of claim should be filed whether the unpaid taxes involved have been 
assessed or not, except in cases where the instructions of the 
Commissioner direct otherwise; for example, where the payment of the 
taxes is secured by a sufficient bond. At the same time proof of claim 
is filed with the bankruptcy or receivership court, the district 
director will send notice and demand for payment to the taxpayer, 
together with a copy of such proof of claim.
    (c) Under sections 3466 and 3467 of the Revised Statutes (31 U.S.C. 
191, 192) and section 64 of the Bankruptcy Act (11 U.S.C. 104), taxes 
are entitled to the priority over other claims therein specified, and 
the trustee, receiver, debtor in possession, or other person designated 
as in control of the assets of the debtor by the court in which the 
proceeding under the Bankruptcy Act or receivership proceeding is 
pending, may be held personally liable for failure on his part to 
protect the priority of the Government respecting taxes of which he has 
notice. Sections 75(l), 77(e), 199, 337(2), 455, and 659(6) of the 
Bankruptcy Act (11 U.S.C. 203(l), 205(e), 599, 737(2), 855, and 1059(6)) 
also contain provisions with respect to the rights of the United States 
relative to priority of payment. For the filing of returns by a trustee 
in bankruptcy or by a receiver, see section 6012(b)(3) and 28 U.S.C. 
960. Bankruptcy courts have jurisdiction under the Bankruptcy Act to 
determine all disputes regarding the amount and validity of taxes 
claimed in a proceeding under the Bankruptcy Act. A proceeding under the 
Bankruptcy Act or a receivership proceeding does not discharge any 
portion of a claim of the United States for taxes except in the case of 
a proceeding under section 77 or chapter X of the Bankruptcy Act. 
However, the claim may be settled or compromised as in other cases in 
court.
    (d) For the requirement that a receiver, trustee in bankruptcy, or 
other like fiduciary give notice as to his qualification as such, see 
section 6036 and the regulations thereunder.