Laws: Cases and Codes : U.S. Code : Title 11 : Section 728


   
U.S. Code as of: 01/19/04
Section 728. Special tax provisions

      (a) For the purposes of any State or local law imposing a tax on
    or measured by income, the taxable period of a debtor that is an
    individual shall terminate on the date of the order for relief
    under this chapter, unless the case was converted under section
    1112 or 1208 of this title.
      (b) Notwithstanding any State or local law imposing a tax on or
    measured by income, the trustee shall make tax returns of income
    for the estate of an individual debtor in a case under this chapter
    or for a debtor that is a corporation in a case under this chapter
    only if such estate or corporation has net taxable income for the
    entire period after the order for relief under this chapter during
    which the case is pending. If such entity has such income, or if
    the debtor is a partnership, then the trustee shall make and file a
    return of income for each taxable period during which the case was
    pending after the order for relief under this chapter.
      (c) If there are pending a case under this chapter concerning a
    partnership and a case under this chapter concerning a partner in
    such partnership, a governmental unit's claim for any unpaid
    liability of such partner for a State or local tax on or measured
    by income, to the extent that such liability arose from the
    inclusion in such partner's taxable income of earnings of such
    partnership that were not withdrawn by such partner, is a claim
    only against such partnership.
      (d) Notwithstanding section 541 of this title, if there are
    pending a case under this chapter concerning a partnership and a
    case under this chapter concerning a partner in such partnership,
    then any State or local tax refund or reduction of tax of such
    partner that would have otherwise been property of the estate of
    such partner under section 541 of this title - 
        (1) is property of the estate of such partnership to the extent
      that such tax refund or reduction of tax is fairly apportionable
      to losses sustained by such partnership and not reimbursed by
      such partner; and
        (2) is otherwise property of the estate of such partner.



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