Page:United States Statutes at Large Volume 119.djvu/151

 PUBLIC LAW 109–8—APR. 20, 2005

119 STAT. 133

‘‘(3) The estate may carry back any loss or tax attribute to a taxable period of the debtor that ended before the date of the order for relief under this title to the extent that— ‘‘(A) applicable State or local tax law provides for a carryback in the case of the debtor; and ‘‘(B) the same or a similar tax attribute may be carried back by the estate to such a taxable period of the debtor under the Internal Revenue Code of 1986. ‘‘(j)(1) For purposes of any State or local law imposing a tax on or measured by income, income is not realized by the estate, the debtor, or a successor to the debtor by reason of discharge of indebtedness in a case under this title, except to the extent, if any, that such income is subject to tax under the Internal Revenue Code of 1986. ‘‘(2) Whenever the Internal Revenue Code of 1986 provides that the amount excluded from gross income in respect of the discharge of indebtedness in a case under this title shall be applied to reduce the tax attributes of the debtor or the estate, a similar reduction shall be made under any State or local law imposing a tax on or measured by income to the extent such State or local law recognizes such attributes. Such State or local law may also provide for the reduction of other attributes to the extent that the full amount of income from the discharge of indebtedness has not been applied. ‘‘(k)(1) Except as provided in this section and section 505, the time and manner of filing tax returns and the items of income, gain, loss, deduction, and credit of any taxpayer shall be determined under applicable nonbankruptcy law. ‘‘(2) For Federal tax purposes, the provisions of this section are subject to the Internal Revenue Code of 1986 and other applicable Federal nonbankruptcy law.’’. (2) CLERICAL AMENDMENT.—The table of sections for chapter 3 of title 11, United States Code, is amended by striking the item relating to section 346 and inserting the following: ‘‘346. Special provisions related to the treatment of State and local taxes.’’. (b) CONFORMING AMENDMENTS.—Title 11 of the United

States

Code is amended— (1) by striking section 728; (2) in the table of sections for chapter 7 by striking the item relating to section 728; (3) in section 1146— (A) by striking subsections (a) and (b); and (B) by redesignating subsections (c) and (d) as subsections (a) and (b), respectively; and (4) in section 1231— (A) by striking subsections (a) and (b); and (B) by redesignating subsections (c) and (d) as subsections (a) and (b), respectively. SEC. 720. DISMISSAL FOR FAILURE TO TIMELY FILE TAX RETURNS.

Section 521 of title 11, United States Code, as amended by sections 106, 225, 305, 315, and 316, is amended by adding at the end the following: ‘‘(j)(1) Notwithstanding any other provision of this title, if the debtor fails to file a tax return that becomes due after the commencement of the case or to properly obtain an extension of

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