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title, except to the extent, if any, that such income is sub-
ject to tax under the Internal Revenue Code of 1986. 
‘‘(2) Whenever the Internal Revenue Code of 1986 
provides that the amount excluded from gross income in 
respect of the discharge of indebtedness in a case under 
this title shall be applied to reduce the tax attributes of 
the debtor or the estate, a similar reduction shall be made 
under any State or local law imposing a tax on or meas-
ured by income to the extent such State or local law recog-
nizes such attributes. Such State or local law may also 
provide for the reduction of other attributes to the extent 
that the full amount of income from the discharge of in-
debtedness has not been applied. 
‘‘(k)(1) Except as provided in this section and section 
505, the time and manner of filing tax returns and the 
items of income, gain, loss, deduction, and credit of any 
taxpayer shall be determined under applicable nonbank-
ruptcy law. 
‘‘(2) For Federal tax purposes, the provisions of this 
section are subject to the Internal Revenue Code of 1986 
and other applicable Federal nonbankruptcy law.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for chapter 3 of title 11, United States Code, 
is amended by striking the item relating to section 
346 and inserting the following:
‘‘346. Special provisions related to the treatment of State and local taxes.’’.
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(b) CONFORMING AMENDMENTS.—Title 11 of the 
United States Code is amended—
(1) by striking section 728; 
(2) in the table of sections for chapter 7 by 
striking the item relating to section 728; 
(3) in section 1146—
(A) by striking subsections (a) and (b); 
and 
(B) by redesignating subsections (c) and 
(d) as subsections (a) and (b), respectively; and 
(4) in section 1231—
(A) by striking subsections (a) and (b); 
and 
(B) by redesignating subsections (c) and 
(d) as subsections (a) and (b), respectively. 
SEC. 720. DISMISSAL FOR FAILURE TO TIMELY FILE TAX 
RETURNS. 
Section 521 of title 11, United States Code, as 
amended by sections 106, 225, 305, 315, and 316, is 
amended by adding at the end the following: 
‘‘(j)(1) Notwithstanding any other provision of this 
title, if the debtor fails to file a tax return that becomes 
due after the commencement of the case or to properly 
obtain an extension of the due date for filing such return,
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the taxing authority may request that the court enter an 
order converting or dismissing the case. 
‘‘(2) If the debtor does not file the required return 
or obtain the extension referred to in paragraph (1) within 
90 days after a request is filed by the taxing authority 
under that paragraph, the court shall convert or dismiss 
the case, whichever is in the best interests of creditors and 
the estate.’’. 
TITLE VIII—ANCILLARY AND 
OTHER CROSS-BORDER CASES 
SEC. 801. AMENDMENT TO ADD CHAPTER 15 TO TITLE 11, 
UNITED STATES CODE. 
(a) IN GENERAL.—Title 11, United States Code, is 
amended by inserting after chapter 13 the following: 
‘‘CHAPTER 15—ANCILLARY AND OTHER 
CROSS-BORDER CASES
‘‘Sec. 
‘‘1501. Purpose and scope of application. 
‘‘SUBCHAPTER I—GENERAL PROVISIONS 
‘‘1502. Definitions. 
‘‘1503. International obligations of the United States. 
‘‘1504. Commencement of ancillary case. 
‘‘1505. Authorization to act in a foreign country. 
‘‘1506. Public policy exception. 
‘‘1507. Additional assistance. 
‘‘1508. Interpretation. 
‘‘SUBCHAPTER II—ACCESS OF FOREIGN REPRESENTATIVES AND 
CREDITORS TO THE COURT 
‘‘1509. Right of direct access. 
‘‘1510. Limited jurisdiction. 
‘‘1511. Commencement of case under section 301 or 303. 
‘‘1512. Participation of a foreign representative in a case under this title. 
‘‘1513. Access of foreign creditors to a case under this title.
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‘‘1514. Notification to foreign creditors concerning a case under this title. 
‘‘SUBCHAPTER III—RECOGNITION OF A FOREIGN PROCEEDING 
AND RELIEF 
‘‘1515. Application for recognition. 
‘‘1516. Presumptions concerning recognition. 
‘‘1517. Order granting recognition. 
‘‘1518. Subsequent information. 
‘‘1519. Relief that may be granted upon filing petition for recognition. 
‘‘1520. Effects of recognition of a foreign main proceeding. 
‘‘1521. Relief that may be granted upon recognition. 
‘‘1522. Protection of creditors and other interested persons. 
‘‘1523. Actions to avoid acts detrimental to creditors. 
‘‘1524. Intervention by a foreign representative. 
‘‘SUBCHAPTER IV—COOPERATION WITH FOREIGN COURTS AND 
FOREIGN REPRESENTATIVES 
‘‘1525. Cooperation and direct communication between the court and foreign 
courts or foreign representatives. 
‘‘1526. Cooperation and direct communication between the trustee and foreign 
courts or foreign representatives. 
‘‘1527. Forms of cooperation. 
‘‘SUBCHAPTER V—CONCURRENT PROCEEDINGS 
‘‘1528. Commencement of a case under this title after recognition of a foreign 
main proceeding. 
‘‘1529. Coordination of a case under this title and a foreign proceeding. 
‘‘1530. Coordination of more than 1 foreign proceeding. 
‘‘1531. Presumption of insolvency based on recognition of a foreign main pro-
ceeding. 
‘‘1532. Rule of payment in concurrent proceedings.
‘‘§ 1501. Purpose and scope of application 
‘‘(a) The purpose of this chapter is to incorporate the 
Model Law on Cross-Border Insolvency so as to provide 
effective mechanisms for dealing with cases of cross-bor-
der insolvency with the objectives of—
‘‘(1) cooperation between—
‘‘(A) courts of the United States, United 
States trustees, trustees, examiners, debtors, 
and debtors in possession; and
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‘‘(B) the courts and other competent au-
thorities of foreign countries involved in cross-
border insolvency cases; 
‘‘(2) greater legal certainty for trade and in-
vestment; 
‘‘(3) fair and efficient administration of cross-
border insolvencies that protects the interests of all 
creditors, and other interested entities, including the 
debtor; 
‘‘(4) protection and maximization of the value 
of the debtor’s assets; and 
‘‘(5) facilitation of the rescue of financially 
troubled businesses, thereby protecting investment 
and preserving employment. 
‘‘(b) This chapter applies where—
‘‘(1) assistance is sought in the United States 
by a foreign court or a foreign representative in con-
nection with a foreign proceeding; 
‘‘(2) assistance is sought in a foreign country in 
connection with a case under this title; 
‘‘(3) a foreign proceeding and a case under this 
title with respect to the same debtor are pending 
concurrently; or 
‘‘(4) creditors or other interested persons in a 
foreign country have an interest in requesting the
285
commencement of, or participating in, a case or pro-
ceeding under this title. 
‘‘(c) This chapter does not apply to—
‘‘(1) a proceeding concerning an entity, other 
than a foreign insurance company, identified by ex-
clusion in section 109(b); 
‘‘(2) an individual, or to an individual and such 
individual’s spouse, who have debts within the limits 
specified in section 109(e) and who are citizens of 
the United States or aliens lawfully admitted for 
permanent residence in the United States; or 
‘‘(3) an entity subject to a proceeding under the 
Securities Investor Protection Act of 1970, a stock-
broker subject to subchapter III of chapter 7 of this 
title, or a commodity broker subject to subchapter 
IV of chapter 7 of this title. 
‘‘(d) The court may not grant relief under this chap-
ter with respect to any deposit, escrow, trust fund, or 
other security required or permitted under any applicable 
State insurance law or regulation for the benefit of claim 
holders in the United States. 
‘‘SUBCHAPTER I—GENERAL PROVISIONS 
‘‘§ 1502. Definitions 
‘‘For the purposes of this chapter, the term—
286
‘‘(1) ‘debtor’ means an entity that is the subject 
of a foreign proceeding; 
‘‘(2) ‘establishment’ means any place of oper-
ations where the debtor carries out a nontransitory 
economic activity; 
‘‘(3) ‘foreign court’ means a judicial or other 
authority competent to control or supervise a foreign 
proceeding; 
‘‘(4) ‘foreign main proceeding’ means a foreign 
proceeding pending in the country where the debtor 
has the center of its main interests; 
‘‘(5) ‘foreign nonmain proceeding’ means a for-
eign proceeding, other than a foreign main pro-
ceeding, pending in a country where the debtor has 
an establishment; 
‘‘(6) ‘trustee’ includes a trustee, a debtor in 
possession in a case under any chapter of this title, 
or a debtor under chapter 9 of this title; 
‘‘(7) ‘recognition’ means the entry of an order 
granting recognition of a foreign main proceeding or 
foreign nonmain proceeding under this chapter; and 
‘‘(8) ‘within the territorial jurisdiction of the 
United States’, when used with reference to property 
of a debtor, refers to tangible property located with-
in the territory of the United States and intangible
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property deemed under applicable nonbankruptcy 
law to be located within that territory, including any 
property subject to attachment or garnishment that 
may properly be seized or garnished by an action in 
a Federal or State court in the United States. 
‘‘§ 1503. International obligations of the United States 
‘‘To the extent that this chapter conflicts with an ob-
ligation of the United States arising out of any treaty or 
other form of agreement to which it is a party with one 
or more other countries, the requirements of the treaty 
or agreement prevail. 
‘‘§ 1504. Commencement of ancillary case 
‘‘A case under this chapter is commenced by the filing 
of a petition for recognition of a foreign proceeding under 
section 1515. 
‘‘§ 1505. Authorization to act in a foreign country 
‘‘A trustee or another entity (including an examiner) 
may be authorized by the court to act in a foreign country 
on behalf of an estate created under section 541. An entity 
authorized to act under this section may act in any way 
permitted by the applicable foreign law. 
‘‘§ 1506. Public policy exception 
‘‘Nothing in this chapter prevents the court from re-
fusing to take an action governed by this chapter if the
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action would be manifestly contrary to the public policy 
of the United States. 
‘‘§ 1507. Additional assistance 
‘‘(a) Subject to the specific limitations stated else-
where in this chapter the court, if recognition is granted, 
may provide additional assistance to a foreign representa-
tive under this title or under other laws of the United 
States. 
‘‘(b) In determining whether to provide additional as-
sistance under this title or under other laws of the United 
States, the court shall consider whether such additional 
assistance, consistent with the principles of comity, will 
reasonably assure—
‘‘(1) just treatment of all holders of claims 
against or interests in the debtor’s property; 
‘‘(2) protection of claim holders in the United 
States against prejudice and inconvenience in the 
processing of claims in such foreign proceeding; 
‘‘(3) prevention of preferential or fraudulent 
dispositions of property of the debtor; 
‘‘(4) distribution of proceeds of the debtor’s 
property substantially in accordance with the order 
prescribed by this title; and
289
‘‘(5) if appropriate, the provision of an oppor-
tunity for a fresh start for the individual that such 
foreign proceeding concerns. 
‘‘§ 1508. Interpretation 
‘‘In interpreting this chapter, the court shall consider 
its international origin, and the need to promote an appli-
cation of this chapter that is consistent with the applica-
tion of similar statutes adopted by foreign jurisdictions. 
‘‘SUBCHAPTER II—ACCESS OF FOREIGN REP-
RESENTATIVES AND CREDITORS TO THE 
COURT 
‘‘§ 1509. Right of direct access 
‘‘(a) A foreign representative may commence a case 
under section 1504 by filing directly with the court a peti-
tion for recognition of a foreign proceeding under section 
1515. 
‘‘(b) If the court grants recognition under section 
1517, and subject to any limitations that the court may 
impose consistent with the policy of this chapter—
‘‘(1) the foreign representative has the capacity 
to sue and be sued in a court in the United States; 
‘‘(2) the foreign representative may apply di-
rectly to a court in the United States for appropriate 
relief in that court; and
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‘‘(3) a court in the United States shall grant 
comity or cooperation to the foreign representative. 
‘‘(c) A request for comity or cooperation by a foreign 
representative in a court in the United States other than 
the court which granted recognition shall be accompanied 
by a certified copy of an order granting recognition under 
section 1517. 
‘‘(d) If the court denies recognition under this chap-
ter, the court may issue any appropriate order necessary 
to prevent the foreign representative from obtaining com-
ity or cooperation from courts in the United States. 
‘‘(e) Whether or not the court grants recognition, and 
subject to sections 306 and 1510, a foreign representative 
is subject to applicable nonbankruptcy law. 
‘‘(f) Notwithstanding any other provision of this sec-
tion, the failure of a foreign representative to commence 
a case or to obtain recognition under this chapter does 
not affect any right the foreign representative may have 
to sue in a court in the United States to collect or recover 
a claim which is the property of the debtor. 
‘‘§ 1510. Limited jurisdiction 
‘‘The sole fact that a foreign representative files a 
petition under section 1515 does not subject the foreign 
representative to the jurisdiction of any court in the 
United States for any other purpose.