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A Liquidating Trustee's Principal Tools for Resolving Tax Issues in Bankruptcies

As part of making distributions to allowed claimants of a bankrupt entity, a liquidating trustee must decide the best way to handle potential outstanding tax liabilities. This article discusses the benefits of Section 505.

21 minute read September 24, 2008 at 02:16 PM
By
Patrick M. Cox And Robert J. Stark
A Liquidating Trustee's Principal Tools for Resolving Tax Issues in Bankruptcies

As part of making distributions to allowed claimants of a bankrupt entity, a liquidating trustee must decide the best way to handle potential outstanding tax liabilities. Generally, this decision requires the trustee to decide between two available options; namely:

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