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HR 5146

Federal Receivership Fairness Act

119th Congress Introduced by Darin LaHood

The Federal Receivership Fairness Act streamlines tax liability determinations in receiverships, ensuring fairness for receivers and taxpayers while clarifying court authority.

Introduced in House
0
WeVote Research Nonpartisan
Bill Summary · HR 5146

Summary of HR 5146: Federal Receivership Fairness Act

Purpose and Intent

The Federal Receivership Fairness Act (HR 5146) aims to amend the Internal Revenue Code of 1986 to establish clear rules regarding the determination of tax liabilities in cases involving receiverships. The bill seeks to streamline the process for receivers to address tax obligations and ensure fairness in the treatment of tax liabilities during receivership proceedings.

Key Provisions

The bill introduces several significant changes to the tax determination process for receiverships:

  1. Court Authority:

    • The bill allows courts appointing receivers to determine the amount and legality of any federal tax, fines, or penalties related to such taxes during receivership proceedings. This includes taxes that have not been previously assessed or contested.

  2. Exceptions:

    • Courts cannot determine tax liabilities if:
      • The amount or legality was previously contested and adjudicated before the receivership.
      • The estate has a right to a federal tax refund that has not been resolved within specified timeframes.
      • The amount arises from an ad valorem tax on property if the contest period has expired.

  3. Request for Determination:

    • Receivers can request a determination of unpaid tax liabilities by submitting a tax return and a request for determination. If the appropriate governmental unit does not respond within specified timeframes, the estate may be discharged from liability for that tax.

  4. Assessment:

    • Following a court determination of tax, the appropriate governmental unit may assess the tax against the estate or any successors.

  5. Definitions:

    • The bill defines "receiver" and "appropriate governmental unit," clarifying who is included under these terms and specifying that bankruptcy trustees and executors of decedent estates are excluded from the definition of a receiver.

  6. Sovereign Immunity:

    • The bill abrogates sovereign immunity for the appropriate governmental unit concerning tax matters addressed in the bill, allowing courts to hear related issues and issue judgments.

Affected Parties

  • Receivers: Individuals or entities appointed by courts to manage receivership estates will benefit from clearer guidelines on tax liabilities.
  • Governmental Units: Federal, state, and local tax authorities will have defined roles in the tax determination process during receiverships.
  • Taxpayers in Receivership: Individuals or entities undergoing receivership will have a more structured process for resolving tax liabilities.

Procedural Aspects

  • Introduced: The bill was introduced in the House of Representatives on September 4, 2025.
  • Committee Referral: It has been referred to the Committee on Ways and Means and the Committee on the Judiciary for further consideration.

Conclusion

The Federal Receivership Fairness Act aims to enhance the fairness and efficiency of tax liability determinations in receivership cases. By providing clear guidelines and authority to courts, the bill seeks to protect the interests of receivers and the estates they manage while ensuring that tax obligations are addressed in a timely manner.

Compiled from official sources — confirm details with the bill’s official record.

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