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§ 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.

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2611; Pub. L. 98-353, ti­tle III, § 481, July 10, 1984, 98 Stat. 382; Pub. L. 99-554, ti­tle II, § 257(t), Oct. 27, 1986, 100 Stat. 3116; Pub. L. 109-8, Title VII, § 719(b)(1), April 20, 2005, 119 Stat. 133.)

HISTORICAL AND REVISION NOTES (11 U.S.C. § 728)

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Page Last Updated:  April 28, 2013