An Act to amend the Bankruptcy Act with respect to limiting the priority and non-dischargeability of taxes in bankruptcy
PL 89-496 (H.R.3438), enacted 07/05/1966

270 
PUBLIC LAW 89-496-JULY 5, 1966 
[80 STAT. 
and powers are conferred upon the trustee under this subdivision, it 
shall be valid to a like extent against the trustee. 
In cases where 
repugnancy or inconsistency exists with reference to the rights and 
powers in this subdivision conferred, the trustee may elect which 
rights and powers to exercise with reference to a particular party, a 
particular remedy, or a particular transaction, without prejudice to 
his right to maintain a different position with reference to a different 
party, a different remedy, or a different transaction." 
Approved July 5, 1966. 
Public Law 89-496 
July 5, 1966 
AN ACT 
[H. R. 3438] 
To amend the Bankruptcy xict with respect to limiting the priority and non-
dischargeability of taxes in bankruptcy. 
Be it enacted hy the Senate and House of Representatives 
of the 
Taxe^^**^^ 
United States of America in Congress assembled, That subdivision 
52 Stat. 842. 
(a) of section 2 of the Bankruptcy Act, as amended (11 U.S.C. 11), 
is amended by inserting after paragraph (2) the following new 
paragraph: 
"(2A) Hear and determine, or cause to be heard and determined, 
any question arising as to the amount or legality of any unpaid tax, 
whether or not previously assessed, which has not prior to bankruptcy 
been contested before and adjudicated by a judicial or administrative 
tribunal of competent jurisdiction, and m respect to any tax, whether 
or not paid, when any such question has been contested and adjudicated 
by a judicial or administrative tribunal of competent jurisdiction and 
the time for appeal or review has not expired, to authorize the receiver 
or the trustee to prosecute such appeal or review;". 
fecte'db"^^dis- 
^^^- ^' Clause (1) of subdivision a of section 17 of such Act, as 
charge. 
amended (11 U.S.C. 35), is amended to read as follows: 
"(1) are taxes which became legally due and owing by the 
bankrupt to the United States or to any State or any subdivision 
thereof within three years preceding bankruptcy: 
Provided., 
however, That a discharge in bankruptcy shall not release a bank-
rupt from any taxes (a) which were not assessed in any case in 
which the bankrupt failed to make a return required by law, 
(b) which were assessed within one year preceding bankruptcy 
in any case in which the bankrupt failed to make a return required 
by law, (c) which were not reported on a return made by the 
bankrupt and which were not assessed prior to bankruptcy by 
reason of a prohibition on assessment pending the exhaustion of 
administrative or judicial remedies available to the bankrupt, 
(d) with respect to which the bankrupt made a false or fraudulent 
return, or willfully attempted in any manner to evade or defeat, 
or (e) which the bankrupt has collected or withheld from others 
as required by the laws of the United States or any State or polit-
ical subdivision thereof, but has not paid over; but a discharge 
shall not be a bar to any remedies available under applicable 
law to the United States or to any State or any subdivision 
thereof, against the exemption of the bankrupt allowed by law 
and duly set apart to him under this Act: And provided 
further, 
That a discharge in bankruptcy shall not release or affect any 
tax lien." 
Effective date. 
80 STAT. ] 
PUBLIC LAW 89-497-JULY 8, 1966 
271 
SEC. 3. Clause (4) of subdivision a of section 64 of such Act, as ^^^^^ having 
amended (11 U.S.C. 104), is amended to read as follows: 
pnonty. 
"(4) taxes which became legally due and owing by the bank-
rupt to the United States or to any State or any subdivision thereof 
which are not i-eleased by a discliarge in bankruptcy: Provided^ 
however^ That no priority over general unsecured claims shall 
pertain to taxes not inclucfed in the foregoing priority: And pro-
vided further. That no order shall be made for the payment of a 
tax assessed against any property of the bankrupt in excess of 
the value of the interest of the bankrupt estate therein as deter-
mined by the court;". 
SEC. 4. If any provision of this Act, or any amendment made by it, 
or the application thereof to any person or circumstance is held invalid, 
such invalidity shall not affect other provisions of this Act, or other 
amendments made by it, or applications thereof which can be given 
effect without the invalid provision or application. 
SEC. 5. (a) Nothing in this Act, or in the amendments made by it, 
shall operate to release or extinguish any penalty, forfeiture, or 
liability incurred under the Bankruptcy Act before the effective date e/stfr^ins^' 
of this Act. 
(b) The amendments made by this Act shall govern proceedings 
so far as applicable in cases pending when it takes effect. 
SEC. 6. This Act shall take effect on the ninetieth day after the date 
of its enactment. 
Approved July 5, 1966. 
Public Law 89-497 
AN ACT 
July 8, 196 6 
To amend title 1 of the United States Code to provide for the admissibility in 
[H. R. 12232] 
evidence of the slip laws and the Treaties and Other International Acts Series; 
and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That section 113 sup laws and 
of title 1, t^nited States Code, is hereby amended to read as follows: *'^^Legal evidence. 
"§ 113. 'Little and BrownV edition of laws and treaties; slip laws; 
Treaties and Other International Acts Series; admissi-
bility in evidence 
"The edition of the laws and treaties of the LTnited States, published 
by Little and Brown, and the publications in slip or pamphlet form of 
the laws of the United States issued under the authority of the Admin-
istrator of General Services, and the Treaties and Other International 
Acts Series issued under the authority of the Secretary of State shall be 
competent evidence of the several public and private Acts of Congress, 
and of the treaties, international agreements other than treaties, and 
proclamations by the President of such treaties and international 
agreements other than treaties, as the case may be, therein contained, in 
all the courts of law and equity and of maritime jurisdiction, and in all 
the tribunals and public offices of the United States, and of the several 
States, without any further proof or authentication thereof." 
SEC. 2. The analysis of chapter 2 of title 1, United States Code, 
preceding section 101, is amended by striking out— 
"113. 'Little and Brown's' edition of laws and treaties; admissibility in evidence." 
61 Stat. 6 36. 
and inserting in lieu thereof the following: 
"113. 'Little and Brown's' edition of laws and treaties; slip laws; Treaties and 
Other International Act Series; admissibility in evidence." 
Approved July 8, 1966.