I 
119TH CONGRESS 
1ST SESSION H. R. 5146 
To amend the Internal Revenue Code of 1986 to provide for certain rules 
regarding determination of tax in the case of a receivership. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 4, 2025 
Mr. LAHOOD (for himself and Mr. BEYER) introduced the following bill; which 
was referred to the Committee on Ways and Means, and in addition to 
the Committee on the Judiciary, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
for certain rules regarding determination of tax in the 
case of a receivership. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Federal Receivership 
Fairness Act’’. 
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SEC. 2. DETERMINATION OF TAX LIABILITY OF RECEIVER-
SHIP ESTATE. 
(a) IN GENERAL.—Subchapter B of chapter 70 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new section: 
‘‘SEC. 6874. DETERMINATION OF TAX LIABILITY BY COURTS. 
‘‘(a) IN GENERAL.—Except as provided in subsection 
(b), the court appointing a receiver in any receivership 
proceeding before any court of the United States or of any 
State or the District of Columbia may determine the 
amount or legality of any Federal tax, any fine or penalty 
relating to such a tax, or any addition to such tax, whether 
or not previously assessed, whether or not paid, and 
whether or not contested before and adjudicated by a judi-
cial or administrative tribunal of competent jurisdiction. 
‘‘(b) EXCEPTIONS.—The court described in sub-
section (a) shall not determine— 
‘‘(1) the amount or legality of any Federal tax, 
fine, penalty, or addition to tax if such amount or 
legality was contested before and adjudicated by a 
judicial or administrative tribunal of competent ju-
risdiction before the commencement of the receiver-
ship, 
‘‘(2) any right of the estate to a Federal tax re-
fund, before the earlier of— 
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‘‘(A) 120 days after the receiver properly 
requests such refund, or 
‘‘(B) a determination by the appropriate 
governmental unit of such request, or 
‘‘(3) the amount or legality of any amount aris-
ing in connection with an ad valorem tax on real or 
personal property of the receivership estate, if the 
applicable period for contesting or redetermining 
that amount under any otherwise applicable law has 
expired. 
‘‘(c) REQUEST FOR DETERMINATION.— 
‘‘(1) PROVISION OF ADDRESS, ETC.—The clerk 
of the court described in subsection (a) shall main-
tain records under which the appropriate govern-
mental unit may— 
‘‘(A) designate an address for service of re-
quests under paragraph (2), and 
‘‘(B) describe where further information 
concerning additional requirements for filing 
such requests may be found. 
If the appropriate governmental unit does not des-
ignate an address and provide such address to the 
clerk under subparagraph (A), any request made 
under paragraph (2) may be served at the address 
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for the filing of a tax return or protest with respect 
to Federal taxes. 
‘‘(2) REQUEST
FOR
DETERMINATION.—A re-
ceiver may request a determination of any unpaid li-
ability of the estate for any tax incurred before or 
during the administration of the case by submitting 
a tax return for such tax and a request for such a 
determination at the address and in the manner des-
ignated in paragraph (1). Unless such return is 
fraudulent, or contains a material misrepresentation, 
the estate, the receiver, the individual or entity in 
receivership, and any successor to such individual or 
entity are all discharged from any liability for such 
tax— 
‘‘(A) upon payment of the tax shown on 
such return, if— 
‘‘(i) the appropriate governmental 
unit does not notify the receiver, within 60 
days after such request, that such return 
has been selected for examination, or 
‘‘(ii) the appropriate governmental 
unit does not complete such an examina-
tion and notify the receiver of any tax due 
within 180 days after such request or with-
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‘‘(i) a bankruptcy trustee appointed in 
a bankruptcy case under title 11, United 
States Code, or 
‘‘(ii) an executor of a decedent’s es-
tate whose rights and responsibilities as to 
Federal tax matters are set forth in or 
governed by other Federal or State law. 
‘‘(2) APPROPRIATE
GOVERNMENTAL
UNIT.— 
The term ‘appropriate governmental unit’ means a 
Federal, State, or local governmental unit respon-
sible for the collection of taxes within the jurisdic-
tion of such governmental unit. 
‘‘(f) WAIVER OF SOVEREIGN IMMUNITY.— 
‘‘(1) IN GENERAL.—Notwithstanding an asser-
tion of sovereign immunity, sovereign immunity is 
abrogated as to the appropriate governmental unit 
to the extent set forth in this subsection with respect 
to the following: 
‘‘(A) All matters in subsections (a) 
through (e). 
‘‘(B) The court described in subsection (a) 
may hear and determine any issue arising with 
respect to the application of this section to the 
appropriate governmental unit. 
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‘‘(C) The court may issue against the ap-
propriate governmental unit an order, process, 
or judgment under this section or under the 
Federal Rules of Civil Procedure, including an 
order or judgment awarding a money recovery, 
but not including an award of punitive dam-
ages. Such order or judgment for costs or fees 
under this section or the Federal Rules of Civil 
Procedure against the appropriate governmental 
unit shall be consistent with the provisions and 
limitations of section 2412(d)(2)(A) of title 28, 
United States Code. 
‘‘(D) The enforcement of any such order, 
process, or judgment against the appropriate 
governmental unit shall be consistent with ap-
propriate law applicable to the governmental 
unit and, in the case of a money judgment 
against the United States, shall be paid as if it 
is a judgment rendered by a district court of 
the United States or any State court. 
‘‘(E) Nothing in this section shall create 
any substantive claim for relief or cause of ac-
tion not otherwise existing under the Federal 
Rules of Civil Procedure or other applicable 
law. 
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‘‘(2) DEEMED WAIVER.—If the appropriate gov-
ernmental unit asserts a claim in any receivership 
case, the appropriate governmental unit is deemed to 
have waived sovereign immunity with respect to a 
claim against the appropriate governmental unit that 
is property of the receivership estate therein and 
that arose out of the same transaction or occurrence 
out of which the claim of the appropriate govern-
mental unit arose. 
‘‘(3) OFFSET
OF
CLAIMS.—Notwithstanding 
any assertion of sovereign immunity by the appro-
priate governmental unit, there shall be offset 
against a claim or interest of the appropriate gov-
ernmental unit any claim against such governmental 
unit that is property of the receivership estate. 
‘‘(g) FEDERAL COURT OPTION.—Notwithstanding 
subsection (a), if the appropriate governmental unit ob-
jects to state court jurisdiction over any determination 
under this section, the matter may be transferred to, re-
moved to, or otherwise heard by the United States District 
Court for the district in which the receivership is pend-
ing’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subchapter B of chapter 70 of the Internal Revenue 
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Code of 1986 is amended by adding at the end the fol-
lowing item: 
‘‘Sec. 6874. Determination of tax liability by courts.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 2201(a) of title 28, United States 
Code, is amended by inserting ‘‘, a proceeding under 
section 6874 of such Code’’ after ‘‘the Internal Rev-
enue Code of 1986’’. 
(2) Section 3713(a)(2) of title 31, United 
States Code, is amended by inserting ‘‘, or to any 
receivership case or proceeding or any receivership 
estate governed by section 6874 of the Internal Rev-
enue Code of 1986’’ after ‘‘title 11’’. 
(3) Section 3713(b) of title 31, United States 
Code, is amended— 
(A) by striking ‘‘(except a trustee acting 
under title 11)’’, 
(B) by striking ‘‘(b)’’ and inserting 
‘‘(b)(1)’’, and 
(C) by adding at the end the following new 
paragraph: 
‘‘(2) Paragraph (1) shall not apply to— 
‘‘(A) a trustee acting under title 11; or 
‘‘(B) any receiver, as defined in section 
6874(e)(1) of the Internal Revenue Code of 1986, 
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exercising the rights afforded to receivers by such 
section 6874.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to returns for which the period 
during which an assessment of tax or an amendment or 
review or audit of the return is open as of the date of 
the enactment of this Act, and to returns filed on or after 
such date of enactment. 
Æ 
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