,i #aaith ,,congress #ast ,session ,h4 ,r4 #eadf ,,in ,,the ,,house ,,of ,,representatives ,september #d1 #bjbe,mr4 ,la,hood 7for himself and ,mr4 ,beyer7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on the ,judiciary1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide for certain rules regarding determination of tax in the case of a receivership4 #a4 ,short title ,this ,act may be cited as the ,federal ,receivership ,fairness ,act4 #b4 ,determination of tax liability of receivership estate 7a7 ,in general ,subchapter ,b of chapter #gj of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #fhgd4 ,determination of tax liability by courts 7a7 ,in general ,except as provided in subsection 7b71 the court appointing a receiver in any receivership proceeding before any court of the ,united ,states or of any ,state or the ,district of ,columbia may determine the amount or legality of any ,federal tax1 any fine or penalty relating to such a tax1 or any addition to such tax1 whether or not previously assessed1 whether or not paid1 and whether or not contested before and adjudicated by a judicial or administrative tribunal of competent jurisdiction4 7b7 ,exceptions ,the court described in subsection 7a7 shall not determine-- 7#a7 the amount or legality of any ,federal tax1 fine1 penalty1 or addition to tax if such amount or legality was contested before and adjudicated by a judicial or administrative tribunal of competent jurisdiction before the commencement of the receivership1 7#b7 any right of the estate to a ,federal tax refund1 before the earlier of-- 7,a7 #abj days after the receiver properly requests such refund1 or 7,b7 a determination by the appropriate governmental unit of such request1 or 7#c7 the amount or legality of any amount arising in connection with an ad valorem tax on real or personal property of the receivership estate1 if the applicable period for contesting or redetermining that amount under any otherwise applicable law has expired4 7c7 ,request for determination 7#a7 ,provision of address1 etc ,the clerk of the court described in subsection 7a7 shall maintain records under which the appropriate governmental unit may-- 7,a7 designate an address for service of requests under paragraph 7#b71 and 7,b7 describe where further information concerning additional requirements for filing such requests may be found4 ,if the appropriate governmental unit does not designate an address and provide such address to the clerk under subparagraph 7,a71 any request made under paragraph 7#b7 may be served at the address for the filing of a tax return or protest with respect to ,federal taxes4 7#b7 ,request for determination ,a receiver may request a determination of any unpaid liability of the estate for any tax incurred before or during the administration of the case by submitting a tax return for such tax and a request for such a determination at the address and in the manner designated in paragraph 7#a74 ,unless such return is fraudulent1 or contains a material misrepresentation1 the estate1 the receiver1 the individual or entity in receivership1 and any successor to such individual or entity are all discharged from any liability for such tax-- 7,a7 upon payment of the tax shown on such return1 if-- 7i7 the appropriate governmental unit does not notify the receiver1 within #fj days after such request1 that such return has been selected for examination1 or 7ii7 the appropriate governmental unit does not complete such an examination and notify the receiver of any tax due within #ahj days after such request or within such additional time as the court1 for cause1 permits1 7,b7 upon payment of the tax determined by the court1 after notice and a hearing1 after completion by the appropriate governmental unit of such examination2 or 7,c7 upon payment of the tax determined by the appropriate governmental unit to be due4 7d7 ,assessment ,after determination by the court of a tax under this section1 the appropriate governmental unit may assess such tax against the estate1 the individual or entity in receivership1 any successor to such individual or entity1 or any entity arising out of the receivership1 as the case may be1 subject to any otherwise applicable law4 7e7 ,definitions ,for purposes of this section-- 7#a7 ,receiver 7,a7 ,in general ,except as provided in subparagraph 7,b71 the term receiver means any person or entity appointed or recognized as a receiver in any action or proceeding by order of a ,federal or ,state court4 7,b7 ,exceptions ,the term receiver does not include-- 7i7 a bankruptcy trustee appointed in a bankruptcy case under title #aa1 ,united ,states ,code1 or 7ii7 an executor of a decedent's estate whose rights and responsibilities as to ,federal tax matters are set forth in or governed by other ,federal or ,state law4 7#b7 ,appropriate governmental unit ,the term appropriate governmental unit means a ,federal1 ,state1 or local governmental unit responsible for the collection of taxes within the jurisdiction of such governmental unit4 7f7 ,waiver of sovereign immunity 7#a7 ,in general ,notwithstanding an assertion of sovereign immunity1 sovereign immunity is abrogated as to the appropriate governmental unit to the extent set forth in this subsection with respect to the following3 7,a7 ,all matters in subsections 7a7 through 7e74 7,b7 ,the court described in subsection 7a7 may hear and determine any issue arising with respect to the application of this section to the appropriate governmental unit4 7,c7 ,the court may issue against the appropriate governmental unit an order1 process1 or judgment under this section or under the ,federal ,rules of ,civil ,procedure1 including an order or judgment awarding a money recovery1 but not including an award of punitive damages4 ,such order or judgment for costs or fees under this section or the ,federal ,rules of ,civil ,procedure against the appropriate governmental unit shall be consistent with the provisions and limitations of section #bdab7;d77#b77;,a7 of title #bh1 ,united ,states ,code4 7,d7 ,the enforcement of any such order1 process1 or judgment against the appropriate governmental unit shall be consistent with appropriate law applicable to the governmental unit and1 in the case of a money judgment against the ,united ,states1 shall be paid as if it is a judgment rendered by a district court of the ,united ,states or any ,state court4 7,e7 ,nothing in this section shall create any substantive claim for relief or cause of action not otherwise existing under the ,federal ,rules of ,civil ,procedure or other applicable law4 7#b7 ,deemed waiver ,if the appropriate governmental unit asserts a claim in any receivership case1 the appropriate governmental unit is deemed to have waived sovereign immunity with respect to a claim against the appropriate governmental unit that is property of the receivership estate therein and that arose out of the same transaction or occurrence out of which the claim of the appropriate governmental unit arose4 7#c7 ,offset of claims ,notwithstanding any assertion of sovereign immunity by the appropriate governmental unit1 there shall be offset against a claim or interest of the appropriate governmental unit any claim against such governmental unit that is property of the receivership estate4 7g7 ,federal court option ,notwithstanding subsection 7a71 if the appropriate governmental unit objects to state court jurisdiction over any determination under this section1 the matter may be transferred to1 removed to1 or otherwise heard by the ,united ,states ,district ,court for the district in which the receivership is pending 4 7b7 ,clerical amendment ,the table of sections for subchapter ,b of chapter #gj of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following item3 ,sec4 #fhgd4 ,determination of tax liability by courts4 4 7c7 ,conforming amendments 7#a7 ,section #bbja7;a7 of title #bh1 ,united ,states ,code1 is amended by inserting 1 a proceeding under section #fhgd of such ,code after the ,internal ,revenue ,code of #aihf4 7#b7 ,section #cgac7;a77#b7 of title #ca1 ,united ,states ,code1 is amended by inserting 1 or to any receivership case or proceeding or any receivership estate governed by section #fhgd of the ,internal ,revenue ,code of #aihf after title #aa4 7#c7 ,section #cgac7;b7 of title #ca1 ,united ,states ,code1 is amended-- 7,a7 by striking 7except a trustee acting under title #aa71 7,b7 by striking 7b7 and inserting 7b77#a71 and 7,c7 by adding at the end the following new paragraph3 7#b7 ,paragraph 7#a7 shall not apply to-- 7,a7 a trustee acting under title #aa2 or 7,b7 any receiver1 as defined in section #fhgd7;e77#a7 of the ,internal ,revenue ,code of #aihf1 exercising the rights afforded to receivers by such section #fhgd4 4 7d7 ,effective date ,the amendments made by this section shall apply to returns for which the period during which an assessment of tax or an amendment or review or audit of the return is open as of the date of the enactment of this ,act1 and to returns filed on or after such date of enactment4