SECTION 1. SUMMARY

This Announcement describes a process for quickly resolving certain IRS-related disputes connected with a taxpayer’s Bankruptcy Case. This administrative process does not alter existing Bankruptcy Court jurisdiction or procedures. With this process, the IRS offers an administrative method to eliminate litigation by resolving IRS-related bankruptcy disputes that are raised by debtors (or debtors’ estates) against the Service in Bankruptcy Court. Debtors can be individuals, corporations, trusts, or partnerships. This process combines two Internal Revenue Service functions to review these disputes: the Office of Special Procedures within the Collection Division, and the Office of Appeals. The process in this announcement is effective during the six month to one-year test period beginning on November 6, 1997, the date this announcement is released to the public. The test will be conducted in four Internal Revenue Service Districts: Houston, Indiana, New England (Massachusetts Bankruptcy courts only), and Southwest (Arizona Bankruptcy Courts only).