Table of Contents

Chapter 1 - Bankruptcy Tax Issues Section 1. 1

Federal Bankruptcy. 1

Means Testing. 2

State Median Income Test 2

Means Test 2

Credit Counseling. 3

Tax Law Changes. 3

Chapter 13 "Super discharge". 3

Subordination of Ad Valorem Tax Liens. 3

Interest on Tax Claims. 3

Tax Returns. 3

Bankruptcy Types. 3

Chapter 7 - Liquidation. 5

Exempt Assets. 5

Availability. 6

Trustee Appointment 6

Chapter 11- Reorganization. 6

Availability. 7

Creditors Committee. 7

Reorganization Plan. 7

Chapter 13 - Wage-Earner Plan. 8

Availability. 8

Repayment Plan. 8

Trustee Appointment 8

Automatic Stay. 9

Tax Assessment 11

Suspension of Statute of Limitation. 11

Immediate Assessment 11

Levy. 12

Tax Court 13

Tax Court Petition. 13

Preferences. 13

Trust Fund Taxes. 14

Allocation of Tax Payments. 14

Priorities. 14

Super Priority Claims. 14

Secured Claims. 15

Federal Tax Liens. 15

Priority Claims. 15

Tax Claim Determination. 16

Refunds. 17

Priority of Tax Claims. 18

Second Priority Tax Claims. 18

Third Priority Tax Claims. 18

Four Generates Priority Eight Tax Claims. 19

Eighth Priority Tax Claims. 19

Debt Discharge. 22

Chapter 7 Discharge. 22

Chapter 11 Discharge. 24

Chapter 13 Discharge. 24

Discharge of Taxes. 24

Tax Liens. 25

Chapter 1 - Section 1 Review Questions. 26

Chapter 1 - Bankruptcy Tax Issues Section 2. 28

Individual Bankruptcy Estate. 28

Separate Entity. 28

Tax Attribute Carryovers. 29

Termination of the Estate. 29

Filing Requirements. 29

Disclosure of Return Information. 31

Taxable Income. 31

Taxable Year 31

Gross Income. 32

Deductions & Credits. 32

Administrative Expenses. 32

Net Operating Loss Carryback. 33

Transfers to Debtor 33

Partnership & S Corporation Interests. 33

Request for Prompt Determination of Liability. 34

Tax Liability. 34

Individual Debtor 35

Tax Year Election. 35

Annualizing Taxable Income. 35

Making the Election. 36

Later Bankruptcy of Spouse. 36

Election Considerations. 37

Transfers between Debtor & Estate. 38

Net Operating Loss Carryback Limitation. 38

Partnership Bankruptcy. 38

No Separate Estate. 38

Discharge of Debts. 38

Corporate Bankruptcy. 39

Exemption Return Filing. 39

Personal Holding Company Tax. 39

Tax-free Reorganizations. 39

'354, '355, & '356. 40

Corporate Liquidations under Chapter 7. 40

Carryover of Tax Items - '381 & 382. 41

Bankruptcy Exception. 42

Reduction of Carryforwards. 42

Section 269 Presumption. 42

Homesteading. 43

Types of Homesteads. 43

Property & Equity Covered. 43

Who Can Homestead?. 44

Excluded Debts. 44

Garnishment 45

Chapter 1 - Section 2 Review Questions. 47

Answers & Explanations. 49

Chapter 1 - Section 1 Review Questions Feedback. 49

Chapter 1 - Section 2 Review Questions Feedback. 53

Glossary. 56

Keywords & Phrases. a

CPE Exam Answer Sheet c

Final Examination. d