Insolvency Clients and a Potential IRS Trust Fund Penalty Interview

By Kenneth B. Dantinne

You have a client that calls you in a panic. She owns a small business that is currently in a chapter 11 case. Things have been going well for the client as you proceed towards confirmation of a plan. The automatic stay has helped tremendously in keeping company creditors at bay while increasing revenue and reducing expenses. So why the panic-stricken call?

I received one such call not long ago: the client had an IRS Revenue Officer (“RO”) appear at her business — unannounced — and demand an interview due to unpaid taxes. According to the RO, it did not matter that my client was in bankruptcy; the automatic stay did not apply, and the IRS had asked the RO to go to my client’s office. The RO was there to conduct a “Trust Fund Interview,” and there was nothing to prevent her from moving forward. After a brief discussion, the RO agreed to move the interview back a few days so I could attend the interview with my client. I had two days to figure out what, exactly, a Trust Fund Interview entailed.

Read more

Seeking Nominations for the 2018 Bankruptcy Pro Bono Award

By Rebecca F. Redwine

Is there a member of your firm or a fellow attorney who should be recognized for his or her pro bono service this year? Have you participated in pro bono projects throughout the year?

If so, please consider submitting a nomination for the 2018 Bankruptcy Pro Bono Award!

The Pro Bono Committee for the Bankruptcy Law Section is now seeking nominations for the 2018 Pro Bono Award to be presented at the 41st Annual Bankruptcy Institute in Pinehurst Nov. 2-3. The outstanding individual achievement award will be given to at least one Bankruptcy Section member who has actively participated in pro bono activities during 2018. All nominations must be submitted by Friday, Oct. 19, 2018 to Rebecca F. Redwine (rredwine@hendrenmalone.com). Please see the nomination form that can be downloaded via this link for more information. Self and third-party nominations will be accepted. We look forward to honoring this year’s award winner in Pinehurst!

Read more

Welcome To the Bankruptcy Section Blog!

By Anna B. Osterhout

I am pleased to be part of the Bankruptcy Section’s initial blog post. While the Bankruptcy Section’s newsletter, the Disclosure Statement (and before that, the Bankruptcy Lawyer), served us well for decades, I am excited that the Bankruptcy Section has launched a more modern and updated way to communicate with our members. Many thanks to all Bankruptcy Section members who served on the Newsletter Committee or who contributed to the Disclosure Statement over the years!

The newly formed Communications Committee is planning at least two blog posts each month. If you are interested in providing content for the blog, please contact Jennifer Lyday, Communications Committee Chair (jlyday@waldrepllp.com).

Read more