The Federal Priority in Insolvency: Proposals for Reform

In 1970, the ABA approved a revised version of its insolvency priority recommendation which is now before the Senate Judiciary Committee as S. 2197, having been introduced by Senator Quentin N. Burdick. by request, for the purpose of inviting public comment. The suggestions and criticisms made in the following analysis of the proposal are meant to detract nothing from the great desirability of the reform, for which I have worked for many years, but are intended to facilitate the kind of accommodation to the legitimate interests of the Government that ultimately paved the way for the adoption of the Federal Tax Lien Act of 1966 and which may prove even more essential in this instance when there are not one, but many federal financial agencies with the power, and perhaps the will, to impede enactment

The Tax Recommendations of the Commission on the Bankruptcy Laws--Income Tax Liabilities of the Estate and the Debtor

The Commission on the Bankruptcy Laws of the United States (Commission), pursuant to congressional mandate, has reported its recommendations for the first comprehensive revision of the bankruptcy laws since the Chandler Act of 1938. This Article deals with the proposals concerning the obligation of the trustee in bankruptcy to file returns of income and to pay federal and state taxes on the income, and concerning the calculation of the taxable incomes of the bankrupt estate and the debtor (including their rights to utilize each other\u27s carryovers), as well as with certain problems in those areas in which the Commission has made no recommendations