Federal Receivership Fairness Act | ChamberLight

IN COMMITTEE· 119TH CONGRESS

House BillHR 5146Taxation

Federal Receivership Fairness Act

INTRO SEP 4· LAST ACTION SEP 4

READING

8MIN

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LEGISLATIVE PROGRESS

STEP 2 / 8

Introduced

In Committee

Reported

Passed House

Passed Senate

Conference

To President

Became Law

WHAT THE BILL DOES

AI-written

This bill matters because it addresses a common frustration in receivership cases: the slow and often complicated process of determining federal tax liabilities. Currently, these tax issues can drag on, delaying the entire receivership process and creating uncertainty for everyone involved—from the struggling entity to its creditors. By centralizing the authority to determine federal tax amounts within the receivership court, and by setting clear deadlines for tax agencies, the bill aims to cut down on these delays.

If this bill becomes law, it could lead to quicker resolution of financial distress, more efficient distribution of assets to creditors, and reduced administrative costs in receivership cases. For businesses and individuals facing financial trouble, it offers a clearer path to resolving their tax debts. If it doesn't pass, the current system of potentially lengthy and separate tax dispute processes would continue, prolonging uncertainty and potentially increasing costs for financially distressed entities and their creditors.

KEY PROVISIONS

4AI-extracted

PROVISION 01

Grants any court appointing a receiver the authority to determine the amount or legality of any Federal tax, including fines and penalties, related to a receivership.

This centralizes the power to resolve federal tax issues within the receivership court, potentially streamlining the process.

PROVISION 02

Establishes specific timeframes within which an "appropriate governmental unit" (like the IRS) must respond to a receiver's request for tax determination or examination.

This provides certainty and a clear timeline for resolving tax liabilities, leading to potential discharge of debt if deadlines are missed.

PROVISION 03

Waives sovereign immunity for the "appropriate governmental unit" regarding matters covered by this bill in receivership proceedings.

This allows the receivership court to issue binding orders and judgments against tax authorities concerning federal tax matters.

PROVISION 04

Defines "receiver" to include persons or entities appointed by Federal or State courts, but specifically excludes bankruptcy trustees and executors of decedent's estates.

This clarifies the scope of the bill, ensuring its provisions apply to general receivership cases and not other specific types of asset administration.

SPONSORSHIP

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ACTION TIMELINE

2 EVENTS

SEP 4

Introduced in House

INTROREFERRAL

SEP 4

Referred to the Committee on Ways and Means, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

INTROREFERRAL

BILL INFO

TypeHouse Bill

NumberHR 5146

Congress119th

StatusIn Committee

IntroducedSep 4, 2025

Last actionSep 4, 2025

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IN COMMITTEE· 119TH CONGRESS · JUDICIARY COMMITTEE · INTRODUCED SEP 4, 2025

House BillHR 5146Taxation

Federal Receivership Fairness Act

INTRODUCED SEP 4, 2025· LAST ACTION SEP 4, 2025

PASSAGE CHANCES

—%

READING

8 min

COSPONSORS

COMPLEXITY

Moderate

Call my reps Congress.gov

LEGISLATIVE PROGRESS

STEP 2 OF 8

Introduced

In Committee

Reported

Passed House

Passed Senate

Conference

To President

Became Law

Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law

WHAT THE BILL DOES

AI-written

KEY PROVISIONS

AI-extracted

high

Grants any court appointing a receiver the authority to determine the amount or legality of any Federal tax, including fines and penalties, related to a receivership.

This centralizes the power to resolve federal tax issues within the receivership court, potentially streamlining the process.

high

Establishes specific timeframes within which an "appropriate governmental unit" (like the IRS) must respond to a receiver's request for tax determination or examination.

This provides certainty and a clear timeline for resolving tax liabilities, leading to potential discharge of debt if deadlines are missed.

high

Waives sovereign immunity for the "appropriate governmental unit" regarding matters covered by this bill in receivership proceedings.

This allows the receivership court to issue binding orders and judgments against tax authorities concerning federal tax matters.

med

Defines "receiver" to include persons or entities appointed by Federal or State courts, but specifically excludes bankruptcy trustees and executors of decedent's estates.

This clarifies the scope of the bill, ensuring its provisions apply to general receivership cases and not other specific types of asset administration.

DEADLINES & DATES

AI-extracted

An AI model extracted this from the bill’s official record and can make mistakes. Check the official text ↗ (opens in new tab)

Within 60 days after the receiver requests a tax determination.

The "appropriate governmental unit" (e.g., IRS) must notify the receiver if a submitted tax return has been selected for examination.

Within 180 days after the receiver requests a tax determination, or within additional time as permitted by the court.

The "appropriate governmental unit" must complete any examination of a tax return and notify the receiver of any tax due.

120 days after the receiver properly requests such refund, or a determination by the appropriate governmental unit of such request.

The court shall not determine any right of the estate to a Federal tax refund before the earlier of these two conditions.

GLOSSARY

AI-written

Receivership: A legal process where a court appoints a neutral third party (a 'receiver') to take control and manage the assets of an individual or business to protect them or liquidate them to pay off debts.
Receiver: The person or entity appointed by a court to manage the assets and affairs of an individual or business during a receivership.
Internal Revenue Code of 1986: The main body of federal tax law in the United States, which outlines rules for taxation, collection, and enforcement by the IRS.
Sovereign Immunity: A legal principle that protects government entities from being sued or having court orders enforced against them without their explicit consent.
Appropriate Governmental Unit: Refers to a federal, state, or local government agency responsible for collecting taxes within its jurisdiction, such as the Internal Revenue Service (IRS) for federal taxes.
Ad Valorem Tax: A tax based on the assessed value of an item, most commonly used for property taxes.
Assessed: To officially determine and record the amount of tax or other financial obligation that is owed.

ACTION TIMELINE

2 EVENTS

SEP 4, 25

Introduced in House

INTROREFERRAL

SEP 4, 25

INTROREFERRAL

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Judiciary CommitteeReferred

Sep 4, 2025

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Federal Receivership Fairness Act

LEGISLATIVE PROGRESS

WHAT THE BILL DOES

KEY PROVISIONS

SPONSORSHIP

ACTION TIMELINE

BILL INFO

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Discussion

Federal Receivership Fairness Act

LEGISLATIVE PROGRESS

WHAT THE BILL DOES

KEY PROVISIONS

DEADLINES & DATES

GLOSSARY

ACTION TIMELINE

SPONSORS

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