Local Rule 2015-3: Debtor in Possession or Chapter 11 Trustee - Tax Reporting Requirements

Rule 2015-3 Debtor in Possession or Chapter 11 Trustee - Tax Reporting Requirements

(A) Within 21 days of the entry of an order authorizing a trustee to operate a business, the trustee must establish a separate bank account in an authorized depository in which to segregate trust fund taxes.

(B) If applicable, within 21 days from the filing of a chapter 11 petition, the debtor in possession must establish a separate trust bank account into which only fiduciary tax deposits may be deposited.

Into this trust account, the debtor in possession or the chapter 11 trustee must deposit all fiduciary federal and state taxes required to be withheld, deducted, collected, or contributed.

(C) Verification of compliance with this rule and with the Internal Revenue Service laws and regulations must be provided by:

• mailing written notice to the Internal Revenue Service and the United States trustee of the location of the bank and the account number into which all fiduciary tax deposits will be made, within seven (7) days from the date the account is opened;

• filing Form 6123, Verification of Fiduciary's Federal Tax Deposit, with the Internal Revenue Service, within two (2) days of making the required deposits and serving a copy on the United States trustee; and • timely filing all required FICA and FUTA employer's tax returns (Forms 940, 941, and 943) and all other required postpetition tax returns with the Internal Revenue Service, rather than filing them with the Regional Service Center.