Not Just Weathering the Storm: Early Tax Planning May Provide for a Brighter Tomorrow After Chapter 11

The Bloomberg BNA Tax Management Weekly State Tax Report filters through current state developments and analyzes those critical to multistate tax planning.

Debtors in bankruptcy proceedings will confront numerous state and local tax issues, but opportunities also arise to allow taxpayers to emerge from bankruptcy in a stronger state tax position. In this article, author Amy Mees discusses some of the state tax impacts of filing for reorganization under Chapter 11, the limitations on state and local tax authorities, and the interplay between state taxes and certain federal code provisions, such as cancellation of indebtedness income and the carryover of net operating losses.

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