§6658 — Coordination with title 11
7 cases·3 followed·4 cited—43% support
Statute Text — 26 U.S.C. §6658
No addition to the tax shall be made under section 6651, 6654, or 6655 for failure to make timely payment of tax with respect to a period during which a case is pending under title 11 of the United States Code—
if such tax was incurred by the estate and the failure occurred pursuant to an order of the court finding probable insufficiency of funds of the estate to pay administrative expenses, or
if—
such tax was incurred by the debtor before the earlier of the order for relief or (in the involuntary case) the appointment of a trustee, and
the petition was filed before the due date prescribed by law (including extensions) for filing a return of such tax, or
the date for making the addition to the tax occurs on or after the day on which the petition was filed.
Subsection (a) shall not apply to any liability for an addition to the tax which arises from the failure to pay or deposit a tax withheld or collected from others and required to be paid to the United States.
Treasury Regulations
- Treas. Reg. §Treas. Reg. §301.6658-1 Addition to tax in case of jeopardy
7 Citing Cases
22 Under certain conditions, section 6658 provides relief from additions to tax under sections 6651, 6654, and 6655 for failure to make timely tax payments during the pendency of a bankruptcy action.
Section 6658(a) provides that "No addition to the tax shall be made under section 6651, 6654, or 6655 for failure to make timely payment of tax with respect to a period during which a case is pending under title 11 ofthe - 50 - United States Code".?8 Nonetheless, section 6658 does not preventthe Coinmissioner from assessing additions to tax which accrue during the pendency ofthe bankruptcy case related to employmenttaxes to the extent that they are withheld or collected from others.
Section 6658 (a) provides that "No a dition to the tax shall be made under section 6651, 6654, or 665 for failure to make timely payment of tax with respect to a eriod during which a case is pending under title 11 of the Un ted States Code" . Petitioners' bankruptcy was pending from the date they filed their petition until their case was clos d on