Should Bankruptcy Courts Abstain from Determining Tax Liabilities Based on Federalism and Comity?

Section 505(a)(1) of the Bankruptcy Code vests a bankruptcy court with the authority to determine the amount and validity of a tax assessment against a debtor.

In an article published by the American Bankruptcy Institute, Rimon Partner Jacquelyn Choi discusses whether Bankruptcy Courts should abstain from determining tax liabilities based on federalism and comity.

Read the article here

Jacquelyn H. Choi counsels secured and unsecured creditors involving all facets of corporate bankruptcy. Ms. Choi has significant experience advising trade creditors, municipalities, lenders, real estate funds, commercial landlords, and corporate franchisors concerning their creditor rights in bankruptcy. She also has extensive bankruptcy litigation and appellate experience. Ms. Choi has a robust practice representing California municipalities involving bankruptcy matters throughout the country. Her clients have included, amongst others, the State of California, and the Counties of Los Angeles, Santa Clara, Santa Barbara, Sonoma, San Bernardino, Merced, Contra Costa and Alameda. Ms. Choi routinely lectures on behalf of California counties concerning a broad range of bankruptcy topics including bankruptcy taxation matters.