Ezel / IRS Rulings / 1024055
Chief Counsel Advice 1024055 Released June 18, 2010 Advice

CCA 1024055: The IRS must turn over pre-petition refunds to a Chapter 7 bankruptcy estate

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This page covers one taxpayer's ruling from 2010, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2010
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It resolved one taxpayer's situation on its specific facts, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

The Office of Chief Counsel advised that Chapter 7 bankruptcy differs from Chapter 13 for purposes of tax refunds. It stated that the IRS is required to turn over pre-petition refunds because they are property of the bankruptcy estate under 11 U.S.C. § 541. The memo also notes that procedures for trustees to request refunds were negotiated with the EOUST and are in the Internal Revenue Manual.

Ruling snapshot

  • Question: Must the IRS turn over pre-petition tax refunds in a Chapter 7 bankruptcy?
  • Outcome: Advice given
  • Key authorities: 11 U.S.C. § 541; Internal Revenue Manual procedures for trustee refund requests

Full text (IRS public release)

ID: CCA_2010050405580050 Number: 201024055
Release Date: 6/18/2010
Office: ---------
UILC: 9115.32-00

From: -----------------------
Sent: Tuesday, May 04, 2010 5:59:14 AM
To: ---------------------
Cc: ------------------
Subject: RE: Refunds and Chapter 7 Debtors

----------- I just realized that you were asking about Chapter 7 debtors, not Chapter 13.
Chapter 7 is different; I don't think there is any question that the IRS is required to
turnover [pre-petition] refunds because they are property of the estate. The procedures
for trustees to request refunds were negotiated with the EOUST; they're in the IRM.

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