Ezel / IRS Rulings / 201024055

CCA 201024055: The IRS must turn over pre-petition refunds to a Chapter 7 bankruptcy estate

Number
201024055
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Property of the Estate (Section 541)
Topics
Other topics
Code sections
§ 541, § 6110
Ruling dated
May 4, 2010
Publicly released
June 18, 2010
Source
View Official PDF

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 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 is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, 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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