IRS Publication 908

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Employer Identification Number ...

    A unique identification number that is assigned to a business ...
  2. Chapter 7

    A bankruptcy proceeding in which a company stops all operations ...
  3. Chapter 13

    A U.S. bankruptcy proceeding in which the debtor undertakes a ...
  4. Chapter 12

    A U.S. bankruptcy proceeding specifically for family farms or ...
  5. Bankruptcy

    A legal proceeding involving a person or business that is unable ...
  6. Chapter 11

    Named after the U.S. bankruptcy code 11, Chapter 11 is a form ...
Related Articles
  1. Bankruptcy Protection For Your Accounts
    Retirement

    Bankruptcy Protection For Your Accounts

  2. Bankruptcy Filing Changes That Could ...
    Options & Futures

    Bankruptcy Filing Changes That Could ...

  3. When You Can't Pay Uncle Sam
    Options & Futures

    When You Can't Pay Uncle Sam

  4. Declaring Bankruptcy Is No Easy Out ...
    Insurance

    Declaring Bankruptcy Is No Easy Out ...

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center