IRS Publication 908


DEFINITION of 'IRS Publication 908'

A document published by the Internal Revenue Service (IRS) that provides information on how federal income tax should be treated in the case of bankruptcy. When an individual files for bankruptcy all assets are placed in a bankruptcy estate, which is assigned its own Employer Identification Number (EIN). In the case that chapter 7 or chapter 11 is filed by an individual, the bankruptcy estate is treated as a separate entity. A separate entity is not created for partnerships or corporations filing for bankruptcy.

BREAKING DOWN 'IRS Publication 908'

If an entity declares bankruptcy before filing a tax return or obtains an extension before bankruptcy proceedings begin, the IRS can ask the court to either dismiss the case or change the chapter filed. If the entity does not file a return or obtain an extension after 90 days, the court is required to dismiss the case or change the chapter filed.

IRS Publication 908 does not cover bankruptcy laws in detail, and is designed to give basic information.

  1. Employer Identification Number ...

    A unique identification number that is assigned to a business ...
  2. Chapter 12

    A U.S. bankruptcy proceeding specifically for family farms or ...
  3. Chapter 11

    Named after the U.S. bankruptcy code 11, Chapter 11 is a form ...
  4. Chapter 13

    A U.S. bankruptcy proceeding in which the debtor undertakes a ...
  5. Chapter 7

    A bankruptcy proceeding in which a company stops all operations ...
  6. Bankruptcy

    A legal proceeding involving a person or business that is unable ...
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    Personal loans from friends, family and employers fall under common categories of debt that can be discharged in the case ... Read Full Answer >>
  2. Can a 401(k) be taken in bankruptcy?

    The two most common types of bankruptcy available to consumers are Chapter 7 and Chapter 13. Whether you file a Chapter 7 ... Read Full Answer >>
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    Unlike regular employee deferrals, catch-up contributions are not included in the 415 limit. While there is an annual limit ... Read Full Answer >>
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