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Chapter 11 Question
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Good political point, but still not a statutory or Rule requirement.
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
Jason Wallach
Sent: Thursday, October 14, 2010 1:35 PM
To: cdcbaa@yahoogroups.com
Subject: Re: [cdcbaa] Chapter 11 Question
I believe there is a portion of the Monthly Operating Report that recaps
taxes owed and delinquencies. UST may be unhappy if you are running behind.
Jason
On Oct 14, 2010, at 12:18 PM, Giovanni Orantes wrote:
Without involved research I don't see anything that requires timely payment
of post-petition taxes. If post-petition taxes are considered
administrative claims, they're supposed to be paid in the ordinary course of
business, but no later than the effective date of the plan. Going by
statutory construction, if post-pet taxes are administrative expenses and
they must be paid by the effective date, the fact that the law already
addresses that issue would be dispositive. The only thing I can see that
would militate for payment is accrual of interest or a motion for relief
from stay by the taxing entity, but I havent had that happen yet. Those are
my quick 2 cents.
2010/10/14 David A. Tilem
DIP wants to defer payment of unsecured (personal) property taxes. I see
requirement to file returns - 521(j). I see creditor's right to seek
payment of admin claim - 503. Is there anything which requires a debtor to
TIMELY pay post petition taxes?
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
Giovanni Orantes, Esq.
Orantes Law Firm, P.C.
3435 Wilshire Blvd. Suite 1980
Los Angeles, CA 90010
Tel: (213) 389-4362
Phone: (888) 619-8222 x101
Fax: (877) 789-5776
e-mail: go@gobklaw.com
website: www.gobklaw.com
WE ARE A "DEBT RELIEF AGENCY" AS DEFINED BY FEDERAL LAW.
SERVING BAKERSFIELD, LOS ANGELES, ORANGE COUNTY, RIVERSIDE, SAN BERNARDINO
AND SANTA BARBARA.
Note: The information contained in this e-mail message is confidential
information intended only for the use of the individual or entity named. If
the reader of this message is not the intended recipient or an agent
responsible for delivering it to the intended recipient, you are hereby
notified that any dissemination, distribution or copy of this communication
is strictly prohibited. If you have received this communication in error,
please immediately notify us by telephone or e-mail and delete the original
e-mail at (213) 389-4362 or (888) 619-8222.
IRS Circular 230 Disclosure: In order to comply with requirements imposed by
the Internal Revenue Service, we inform you that any U.S. tax advice
contained in this communication (including any attachments) is not intended
to be used, and cannot be used, for the purpose of (i) avoiding penalties
under the Internal Revenue Code or (ii) promoting, marketing, or
recommending to another party any transaction or matter addressed herein.
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Message
Good political point, but
still not a statutory or Rule requirement.
David A.
Tilem
Certified Bankruptcy
Specialist*
The post was migrated from Yahoo.
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It depends on the taxing authoritys patience. Its remedy against late-paid
taxes is to file an administrative claim, or find a reason to dismiss. In a
chapter 13, the IRS tries to dismiss plans where the debtors dont pay
during the plan, but that motion usually requires at least two years of
post-petition pyramiding to be successful, and its premised on plan
prohibitions against incurring more post-petition debt without court
approval. I know of nothing in the code requiring timely payment of taxes,
but the language of the plan may control.
Short answer: how long is the deferral? If its two months, I dontheres a problem. If its two years, watch out.
- John D. Faucher
On 10/14/10 12:09 PM, "David Tilem" wrote:
>
>
>
>
>
> DIP wants to defer payment of unsecured (personal) property taxes. I see
> requirement to file returns - 521(j). I see creditor's right to seek payment
> of admin claim - 503. Is there anything which requires a debtor to TIMELY pay
> post petition taxes?
>
> David A. Tilem
> Certified Bankruptcy Specialist*
> Law Offices of David A. Tilem (a debt relief agency)
> 206 N. Jackson Street, #201, Glendale, CA 91206
> Tel: 818-507-6000 Fax: 818-507-6800
>
> * Bankruptcy specialist cert. by State Bar of CA Bd of Legal Specialization.
> Business bankruptcy specialist cert. by Amer. Bd. of Certification
>
>
>
>
>
>
>
>>> - John D. Faucher
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Re: [cdcbaa] Chapter 11 Question
It depends on the taxing authority’s patience. Its remedy against late-paid taxes is to file an administrative claim, or find a reason to dismiss. In a chapter 13, the IRS tries to dismiss plans where the debtors don’t pay during the plan, but that motion usually requires at least two years of post-petition pyramiding to be successful, and it’s premised on plan prohibitions against incurring more post-petition debt without court approval. I know of nothing in the code requiring timely payment of taxes, but the language of the plan may control.
The post was migrated from Yahoo.
charsetndows-1252
I believe there is a portion of the Monthly Operating Report that recaps taxes owed and delinquencies. UST may be unhappy if you are running behind.
Jason
On Oct 14, 2010, at 12:18 PM, Giovanni Orantes wrote:
> Without involved research I don't see anything that requires timely payment of post-petition taxes. If post-petition taxes are considered administrative claims, they're supposed to be paid in the ordinary course of business, but no later than the effective date of the plan. Going by statutory construction, if post-pet taxes are administrative expenses and they must be paid by the effective date, the fact that the law already addresses that issue would be dispositive. The only thing I can see that would militate for payment is accrual of interest or a motion for relief from stay by the taxing entity, but I havent had that happen yet. Those are my quick 2 cents.
>
> 2010/10/14 David A. Tilem
>
>
> DIP wants to defer payment of unsecured (personal) property taxes. I see requirement to file returns - 521(j). I see creditor's right to seek payment of admin claim - 503. Is there anything which requires a debtor to TIMELY pay post petition taxes?
>
> David A. Tilem
> Certified Bankruptcy Specialist*
> Law Offices of David A. Tilem (a debt relief agency)
> 206 N. Jackson Street, #201, Glendale, CA 91206
> Tel: 818-507-6000 Fax: 818-507-6800
>
> * Bankruptcy specialist cert. by State Bar of CA Bd of Legal Specialization.
> Business bankruptcy specialist cert. by Amer. Bd. of Certification
>
>
>
>
>
>
>
>
> --
> Giovanni Orantes, Esq.
> Orantes Law Firm, P.C.
> 3435 Wilshire Blvd. Suite 1980
> Los Angeles, CA 90010
> Tel: (213) 389-4362
> Phone: (888) 619-8222 x101
> Fax: (877) 789-5776
> e-mail: go@gobklaw.com
> website: www.gobklaw.com
>
> WE ARE A "DEBT RELIEF AGENCY" AS DEFINED BY FEDERAL LAW.
>
> SERVING BAKERSFIELD, LOS ANGELES, ORANGE COUNTY, RIVERSIDE, SAN BERNARDINO AND SANTA BARBARA.
>
> Note: The information contained in this e-mail message is confidential information intended only for the use of the individual or entity named. If the reader of this message is not the intended recipient or an agent responsible for delivering it to the intended recipient, you are hereby notified that any dissemination, distribution or copy of this communication is strictly prohibited. If you have received this communication in error, please immediately notify us by telephone or e-mail and delete the original e-mail >
> IRS Circular 230 Disclosure: In order to comply with requirements imposed by the Internal Revenue Service, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.
>
>
>
charsetndows-1252
I believe there is a portion of the Monthly Operating Report that recaps taxes owed and delinquencies. UST may be unhappy if you are running behind.JasonOn Oct 14, 2010, at 12:18 PM, Giovanni Orantes wrote:
Without involved research I don't see anything that requires timely payment of post-petition taxes. If post-petition taxes are considered administrative claims, they're supposed to be paid in the ordinary course of business, but no later than the effective date of the plan. Going by statutory construction, if post-pet taxes are administrative expenses and they must be paid by the effective date, the fact that the law already addresses that issue would be dispositive. The only thing I can see that would militate for payment is accrual of interest or a motion for relief from stay by the taxing entity, but I havent had that happen yet. Those are my quick 2 cents.
2010/10/14 David A. Tilem <DavidTilem@tilemlaw.com>
DIP wants to defer payment of unsecured (personal) property taxes. I see requirement to file returns - 521(j). I see creditor's right to seek payment of admin claim - 503. Is there anything which requires a debtor to TIMELY pay post petition taxes?
David A. Tilem
Certified Bankruptcy Specialist
The post was migrated from Yahoo.
charsetndows-1252
Is the entire tax period, ie. tax year, post-petition? I think personal property taxes, like real property taxes, are for the fiscal year July 1-June 30.
Jason
On Oct 14, 2010, at 12:09 PM, David A. Tilem wrote:
>
> DIP wants to defer payment of unsecured (personal) property taxes. I see requirement to file returns - 521(j). I see creditor's right to seek payment of admin claim - 503. Is there anything which requires a debtor to TIMELY pay post petition taxes?
>
> David A. Tilem
> Certified Bankruptcy Specialist*
> Law Offices of David A. Tilem (a debt relief agency)
> 206 N. Jackson Street, #201, Glendale, CA 91206
> Tel: 818-507-6000 Fax: 818-507-6800
>
> * Bankruptcy specialist cert. by State Bar of CA Bd of Legal Specialization.
> Business bankruptcy specialist cert. by Amer. Bd. of Certification
>
>
>
>
>
charsetndows-1252
Is the entire tax period, ie. tax year, post-petition? I think personal property taxes, like real property taxes, are for the fiscal year July 1-June 30.JasonOn Oct 14, 2010, at 12:09 PM, David A. Tilem wrote:
The post was migrated from Yahoo.
Without involved research I don't see anything that requires timely payment
of post-petition taxes. If post-petition taxes are considered
administrative claims, they're supposed to be paid in the ordinary course of
business, but no later than the effective date of the plan. Going by
statutory construction, if post-pet taxes are administrative expenses and
they must be paid by the effective date, the fact that the law already
addresses that issue would be dispositive. The only thing I can see that
would militate for payment is accrual of interest or a motion for relief
from stay by the taxing entity, but I havent had that happen yet. Those are
my quick 2 cents.
2010/10/14 David A. Tilem
>
>
> DIP wants to defer payment of unsecured (personal) property taxes. I see
> requirement to file returns - 521(j). I see creditor's right to seek
> payment of admin claim - 503. Is there anything which requires a debtor to
> TIMELY pay post petition taxes?
>
> *David A. Tilem*
> Certified Bankruptcy Specialist** *
> Law Offices of David A. Tilem (a debt relief agency)
> 206 N. Jackson Street, #201, Glendale, CA 91206
> Tel: 818-507-6000 Fax: 818-507-6800
>
> * Bankruptcy specialist cert. by State Bar of CA Bd of Legal
> Specialization.
> Business bankruptcy specialist cert. by Amer. Bd. of Certification
>
>
>
>
>
>
Giovanni Orantes, Esq.
Orantes Law Firm, P.C.
3435 Wilshire Blvd. Suite 1980
Los Angeles, CA 90010
Tel: (213) 389-4362
Phone: (888) 619-8222 x101
Fax: (877) 789-5776
e-mail: go@gobklaw.com
website: www.gobklaw.com
WE ARE A "DEBT RELIEF AGENCY" AS DEFINED BY FEDERAL LAW.
SERVING BAKERSFIELD, LOS ANGELES, ORANGE COUNTY, RIVERSIDE, SAN BERNARDINO
AND SANTA BARBARA.
Note: The information contained in this e-mail message is confidential
information intended only for the use of the individual or entity named. If
the reader of this message is not the intended recipient or an agent
responsible for delivering it to the intended recipient, you are hereby
notified that any dissemination, distribution or copy of this communication
is strictly prohibited. If you have received this communication in error,
please immediately notify us by telephone or e-mail and delete the original
e-mail at (213) 389-4362 or (888) 619-8222.
IRS Circular 230 Disclosure: In order to comply with requirements imposed by
the Internal Revenue Service, we inform you that any U.S. tax advice
contained in this communication (including any attachments) is not intended
to be used, and cannot be used, for the purpose of (i) avoiding penalties
under the Internal Revenue Code or (ii) promoting, marketing, or
recommending to another party any transaction or matter addressed herein.
Withoutinvolved researchI don't see anything that requires timely payment of post-petition taxes. If post-petition taxes are considered administrative claims, they're supposed to be paid in the ordinary course of business, but no later than the effective date of the plan.inistrativeexpenses and they must be paid by the effective date, the fact that the law already addresses that issue wouldbe dispositive.rual of interest or a motion for relief from stay by the taxing entity, but I havent had that happen yet. Those are my quick 2 cents.
2010/10/14 David A. Tilem <DavidTilem@tilemlaw.com>
DIP wants to defer payment of unsecured (personal) property taxes. I see requirement to file returns - 521(j).axes?
The post was migrated from Yahoo.
charset="windows-1251"
DIP wants to defer payment of unsecured (personal) property taxes. I see
requirement to file returns - 521(j). I see creditor's right to seek
payment of admin claim - 503. Is there anything which requires a debtor to
TIMELY pay post petition taxes?
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
charset="windows-1251"
Message
DIP wants to defer payment
of unsecured (personal) property taxes. I see requirement to file returns
- 521(j). I see creditor's right to seek payment of admin claim -
503. Is there anything which requires a debtor to TIMELY pay post petition
taxes?
David A.
Tilem
Certified Bankruptcy
Specialist*
The post was migrated from Yahoo.