IRS Tests Streamlined Bankruptcy
Appeals Process

WASHINGTON - The Internal Revenue Service will test a new process to resolve certain tax-related disputes without ligation when taxpayers are in bankruptcy. The test begins today and will be conducted in Arizona, Indiana, Massachusetts and the Texas counties that comprise the Houston IRS District.

The Bankruptcy Appeals Process is an administrative approach that does not alter the existing jurisdiction or procedures of the Bankruptcy Court. The intent is to give debtors a fast and effective means to resolve certain tax disputes related to their bankruptcy filing. This process will be available only to the debtor, not to third parties such as creditors or creditors' committees.

After the test, which may last up to one year, the IRS will evaluate the results and consider whether to extend the program nationwide. Details on the Bankruptcy Appeals Process are in Announcement 97-111, which is available now through the IRS Website at www.irs.ustreas.gov, and which will be published in Internal Revenue Bulletin 1997-47, dated November 24, 1997.

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