James R. Kelley
Neal & Harwell PLC; Nashville, Tenn.

Morgan D. King
King Bankruptcy Media; Dublin, Calif.

*Presented at the ABI Annual Spring Meeting, April 2004
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ASM Committee Meeting Addresses New IRS Automated
Proof-of-claim Program
The Bankruptcy Taxation Committee met in Washington, D.C. in April for the 2004 Annual Spring Meeting. Joan Peterson (IRS Territory Manager; St. Paul, Minn.) provided a presentation of the new IRS automated proof of claim program that is to be activated in early 2005. The IRS plans to centralize in four locations the preparation of proofs of claim for all bankruptcy cases. While such a program cannot respond to the myriad variations that can occur with respect to proofs of claim, the program will enable the IRS to file the vast majority of claims within days of a bankruptcy petitition filing. The program will also alert IRS local office Insolvency Unit Bankruptcy Specialists and Technicians to the need to semi-manually prepare those claims that cannot be automated completely.

It is believed that significant time will be saved by this new program so that local IRS personnel will be better able to review schedules and statements of affairs, identify bankruptcy issues and resolve more quickly inquiries that are received from debtor's counsel.. The one weakness that was identified by those in attendance concerned unfiled tax returns. While the IRS will make a good-faith estimate of the amount of tax due on unfiled tax returns, and while a notice of the unfiled returns will be mailed to the debtors asking that they file the returns so that more precise amended claims may be filed, no notice of the unfiled returns is to be sent to debtors' counsel even though they can readily be identified from PACER.

Committee Seeks Articles Submissions, Panelists

The committee solicits all ABI members to submit short articles (500-1,000 words) for publication in the committee’s e-newsletter. If you would like to submit an article, please contact Charles Rosen. The committee is also looking for members who would like to participate in panel presentations. We encourage “young” members to contact us and to participate in committee activities.