,,ii  #aaith ,,congress  #b;d ,session  
,s4 #edgg  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,september #bc1
 #bjbf,mr4 ,young 7for himself and ,mr4 
,warner7 introduced the following bill2 
which was read twice and referred to the
 ,committee on ,finance  ,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 ,federal 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 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
 receivership 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 ,secretary 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 ,secretary 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 ,secretary 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 receivership 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 receivership     
estate1 the receiver1 the entity or     
individual in receivership1 and any     
successor to such entity or individual  
are all discharged from any liability   
for such tax-- 7,a7 upon payment of the 
tax shown on such return1 if-- 7i7 the  
,secretary does not notify the receiver1
 within #fj days after such request1    
that such return has been selected for  
examination1 or  7ii7 the ,secretary    
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 ,secretary of such   

examination2 or  7,c7 upon payment of   
the tax determined by the ,secretary to 
be due4  7d7 ,assessment ,after         
determination by the court of a tax     
under this section1 the ,secretary may  
assess such tax against the receivership
 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 ,receiver ,for     
purposes of this section-- 7#a7 ,in     
general ,except as provided in paragraph
 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-- 7,a7 a 
bankruptcy trustee appointed in a       
bankruptcy case under title #aa1 ,united
 ,states ,code1 or  7,b7 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  7f7      
,waiver of sovereign immunity  7#a7 ,in 
general ,notwithstanding an assertion of
 sovereign immunity1 sovereign immunity 
is abrogated as to the ,secretary to the
 extent set forth in this subsection    
with respect to all matters in          
subsections 7a7 through 7e74  7#b7      
,jurisdiction of court ,the court       
described in subsection 7a7 may hear and
 determine any issue arising with       
respect to the application of this      
section to the ,secretary1 and may issue
 against the ,secretary 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 ,secretary shall be         
consistent with the provisions and      

limitations of section                  
#bdab7;d77#b77;,a7 of title #bh1 ,united
 ,states ,code4  7#c7 ,enforcement ,the 
enforcement of any such order1 process1 
or judgment against the ,secretary shall
 be consistent with appropriate law     
applicable to the ,secretary 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#d7 ,coordination with  
applicable law ,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#e7 ,deemed waiver ,if the       
,secretary asserts a claim in any       
receivership case1 the ,secretary is    
deemed to have waived sovereign immunity
 with respect to a claim against the    
,secretary which is property of the     
receivership estate therein and which   
arose out of the same transaction or    

occurrence out of which the claim of the
 ,secretary arose4  7#f7 ,offset of     
claims ,notwithstanding any assertion of
 sovereign immunity by the ,secretary1  
there shall be offset against a claim or
 interest of the ,secretary any claim   
against the ,secretary which is property
 of the receivership estate4  7g7 ,grant
 of jurisdiction to ,federal court ,in  
any receivership proceeding in a court  
of any ,state or the ,district of       
,columbia1 the determination of any     
,federal tax shall be adjudicated by the
 ,united ,states ,district ,court for   
the district in which such proceeding is
 pending1 and shall not be determined or
 adjudicated by any such court of such  
,state or the ,district of ,columbia4  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