Consumer Bankruptcy Journal Winter 2018 | Page 28

the transcripts with a code 150 , there is , sometime later , at least one entry coded 599 with the description “ tax return filed .” [ The IRS witness ] Kirkpatrick testified that a code 599 is entered whenever an SFR is filed . Kirkpatrick testified that a code 599 will be entered again whenever a taxpayer files a tax return to replace the SFR .” However , other IRS experts have indicated to the author that it also denotes a taxpayerfiled return .”

To identify the meaning of code 599 , it should be cross-referenced to another set of codes , the “ closing codes .” Like transaction codes , the closing codes are more or less spelled out in IRS publication 6209 . 19 However , the author in recent conversation with an IRS insolvency officer regarding code 599 has been advised that the closing codes may no longer be applicable in this context , and hence it may be unsafe to rely on the closing codes to determine it is the client ’ s return , or an SFR .

Caveat , it may require a phone call to the IRS “ Practitioner ’ s Priority Hotline ” to get a handle on what , exactly a code 599 on your client ’ s transcript may mean . 20

Conclusion

There are more issues involving account transcripts , including the many “ 971 ” codes that typically appear , the transcript that shows zero owed but the IRS has been trying to levy on your client for something , the Assessment Statute Extension Date (“ ASED ”), and other more arcane matters . These will be addressed

As may be seen , getting and understanding account transcripts can be a challenge . Professionals who do not feel confident that they understand them exactly may get an analysis of his / her client ’ s tax discharge eligibility from the author . Visit MorganKing . com and click on RequestTaxOpinion . com near the top of the page .

( Endnotes )

1 Those states having income taxes will have their equivalent forms of returns , called by different names , that will be subject to the same rules that apply to IRS transcripts .

7 11 U . S . C . § 507 ( a )( 8 )( A )( ii ). 8 IRM § 4.12.1.8.1 ( 10-05-2010 ), IRM 4.4.9.2.3.2.1 ( 05-08-2012 )).

9 But excluding “ trust-fund ” penalties . 10 11 U . S . C . § 523 ( a )( 7 )( B ). 11 11 U . S . C . § 507 ( a )( 8 )( G ). 12 If the original assessment has satisfied the 3-year rule , the 240-day rule , and the 2-year rule , a subsequent assessment does no trigger these again ; the additional assessment need only satisfy its own 240 period . 13 Two more rules for tax discharge , no fraud , and no evasion . 11 U . S . C . § 523 ( a )( 1 )( C ). 14 The author invented this expression . 15 In re Lamborn , 204 B . R . 999 ( Bankr . N . D . Okla ., 1997 ), Maitland v . N . J . Div . of Tax .

531 B . R . 516 ( Bankr . N . J ., 2015 ).

16 ( 11 USC § 507 ( a )( 8 )( A )( ii )( I )), or 90 days ( 11 U . S . C . 507 ( a )( 8 )( G )).

17 11 U . S . C . 507 ( a )( 8 )( G ). 18 McGrew v . Internal Revenue Serv . ( In re McGrew ), 559 B . R . 711 ( Bankr . N . D . Iowa , 2016 )

19 The 2017 edition of 6209 may be found at MorganKing . com , top of page , 4 – Tax Discharge , item TaxJustice & Research . 20 This number may be found at MorganKing . com , top of page , link # 4 Tax Discharge , and link TaxJustice & Research .

28 CONSUMER BANKRUPTCY JOURNAL Winter 2018 National Association of Consumer Bankruptcy Attorneys