Bill · H.R. 5146· House(119-HR-5146)
Federal Receivership Fairness Act
- Introduced
- 9/4/2025
- Last activity
- 9/4/2025 — Referred to the Committee on Ways and Means, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Sponsored by
- Darin LaHood
- Cosponsors
- - 0 - 2
- Introduced
- In Committee
What this bill would do
The Federal Receivership Fairness Act amends the Internal Revenue Code of 1986 to allow courts to determine the amount or legality of Federal taxes, fines, and penalties in receivership proceedings. It allows receivers to request tax determinations and provides a process for discharging tax liabilities upon payment. The bill also addresses the waiver of sovereign immunity for governmental units involved in these proceedings. It excludes bankruptcy trustees and certain executors from the definition of a receiver. The act applies to tax returns that are currently open for audit or filed after the law is enacted.
Yes
Would business owners be better off under this?+3
Beneficial for business owners whose entities enter receivership by allowing judicial tax determination and potential discharge.
Does this protect the right to fair treatment by the courts?+3
Provides a clearer judicial mechanism for determining tax liabilities within receivership proceedings.
Does this make it easier to run a small business?+2
Provides more judicial clarity and a path to discharge tax liabilities for entities in receivership.
The opposite
Does this give the federal government more power?-2
Abrogates sovereign immunity for governmental units, allowing courts to issue judgments against them.
Who it would affect, and how
Potential Positive Impacts for People
- Tax Liability Discharge: The estate, receiver, and the individual or entity in receivership can be discharged from tax liability upon payment of the tax shown on a return if the government does not notify the receiver of an examination within 60 days or complete it within 180 days (Sec. 2, subsection c(2)).
- Court Determination of Taxes: Courts can determine the amount or legality of Federal taxes and penalties, providing a judicial mechanism to resolve these disputes within the receivership proceeding (Sec. 2, subsection a).
- Sovereign Immunity Waiver: Sovereign immunity is abrogated for governmental units, allowing the court to issue orders or judgments for money recovery against them (Sec. 2, subsection f(1)).
- Offset of Claims: Claims against a governmental unit that are property of the receivership estate can be offset against claims made by that governmental unit (Sec. 2, subsection f(3)).
Potential Negative Impacts for People
- Loss of Prior Adjudications: The court cannot determine tax legality if it was already adjudicated before the receivership began, which may limit the scope of the court's power to resolve old disputes (Sec. 2, subsection b(1)).
- Limited Refund Timelines: The court cannot determine a right to a Federal tax refund before 120 days after a receiver requests the refund or until a governmental unit makes a determination (Sec. 2, subsection b(2)).
- Exclusion of Certain Parties: Bankruptcy trustees and executors of decedent's estates are specifically excluded from the definition of a receiver and cannot use these provisions (Sec. 2, subsection e(1)).
- Property Tax Limitations: The court cannot determine the legality of ad valorem taxes on real or personal property if the legal period for contesting those amounts has already expired (Sec. 2, subsection b(3)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Business Owners+3
- Economy And Finance
- Improves Small Business Support+2
- Governance And Ideology
- Improves Due Process+3Increases Federal Power-2
- 9/15/2025
- 1 Cosponsor added.
- 9/4/2025
- Referred to the Committee on Ways and Means, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 1 Cosponsor added.
- Introduced in House
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Donald BeyerDemocrat · Virginia
Eugene VindmanDemocrat · Virginia