2.16 Federal Tax Obligations

• Jurisdiction: United States

2.16 STATUTES OF LIMITATIONS FOR COLLECTION AND ASSESSMENT

As a routine matter, before plunging the client into bankruptcy for the purpose of discharging taxes, bankruptcy counsel should look at the statute of limitations as to the assessment or collectability of the debtor's taxes. It may turn out that the tax claims are moot due to lapse of the limitations period set forth in the Internal Revenue Code or other tax entity regulations, making them uncollectible and thus making the bankruptcy unnecessary...