Local Rule 14
 
RULE 14. INCOME TAX REFUNDS

14.1

Offset of Income Tax Refund  ( 6070-1)
The Internal Revenue Service is authorized:

a.   to make income tax refunds, in the ordinary course of business to the debtors in Chapter 7 and Chapter 13 cases, unless directed otherwise in writing by the trustee or the Court, and

b.   the Internal Revenue Service is authorized to offset any refund against any taxes due to the United States.

14.2

IRS Duty to Notify Court and Trustee 
Where the Internal Revenue Service has on file with the Bankruptcy Court a proof of claim covering tax liabilities of the debtor, the IRS must - in letter form, or by amended claim - notify the Bankruptcy Court and the Trustee of any and all offsets made pursuant to authorization in all such cases.

14.3

 IRS Assessment of Tax Liabilities  (6070-1)
The Internal Revenue Service will assess tax liabilities which are due in all cases on voluntarily filed tax returns.

14.4

Modification of Stay 
The stay afforded by 11 U.S.C. Section 362 is modified to the extent provided by this Rule.

This page was last edited on 07/01/2008 at 10:54 AM .