[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(b)-1]

[Page 469-470]
 
                       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(b)-1  Claims for income, estate, and gift taxes in 

proceedings under the Bankruptcy Act and receivership proceedings; 
claim filed despite pendency of Tax Court proceedings.

    (a) If it is determined that a deficiency is due in respect of 
income, estate, or gift tax and the taxpayer has filed a petition with 
the Tax Court before (1) the adjudication of bankruptcy in any 
liquidating proceeding, (2) the filing with a court of competent 
jurisdiction or (where approval is required by the Bankruptcy Act, 11 
U.S.C. chapters 1-14) the approval of a petition of, or the approval of 
a petition against, any taxpayer in any other proceeding under the 
Bankruptcy Act, or (3) the appointment of a receiver, the trustee,

[[Page 470]]

receiver, debtor in possession, or other like fiduciary, may, upon his 
own motion, be made a party to the Tax Court proceeding and thereafter 
may prosecute the appeal before the Tax Court as to that particular 
determination. No petition shall be filed with the Tax Court for a 
redetermination of the deficiency after the adjudication of bankruptcy, 
the filing or (where approval is required by the Bankruptcy Act) the 
approval of a petition of, or the approval of a petition against, any 
taxpayer in any other bankruptcy proceeding, or the appointment of the 
receiver.
    (b) Even though the determination of a deficiency is pending before 
the Tax Court for redetermination, proof of claim for the amount of such 
deficiency may be filed with the court in which the proceeding under the 
Bankruptcy Act or receivership proceeding is pending without awaiting 
final decision of the Tax Court. In case of a final decision of the Tax 
Court before the payment or the disallowance of the claim in the 
proceeding under the Bankruptcy Act or receivership proceeding, a copy 
of the Tax Court's decision may be filed by the district director with 
the court in which such proceeding is pending.
    (c) While a district director is required by section 6871(a) and 
paragraph (a) of Sec. 301.6871(a)-1 to make immediate assessment of any 
deficiency, such assessment is not made as a jeopardy assessment within 
the meaning of section 6861, and consequently the provisions of that 
section do not apply to any assessment made under section 6871. 
Therefore, the notice of deficiency provided in section 6861(b) will not 
be mailed. Although such notice will not be issued, a letter will be 
sent to the taxpayer or to the trustee, receiver, debtor in possession, 
or other like fiduciary, notifying him in detail how the deficiency was 
computed, that he may furnish evidence showing wherein the deficiency is 
incorrect, and that upon request he will be granted a conference by the 
district director with respect to such deficiency. However, such letter 
will not provide for such a conference where a petition was filed with 
the Tax Court before (1) the adjudication of bankruptcy in a liquidating 
proceeding, (2) the filing with a court of competent jurisdiction or 
(where approval is required by the Bankruptcy Act), the approval of a 
petition of, or the approval of a petition against, any taxpayer in any 
other proceeding under the Bankruptcy Act, or (3) the appointment of a 
receiver.