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Taxes

Managing Cash and Stakeholders to Turn Around a Company

Insufficient liquidity shrinks the range of options for a financially distressed business. The metaphor of a melting ice cube is often used to illustrate the situation. When the cash runs out and the company is unable to pay its employees or vendors, the ice cube has melted. The business has failed, and recoverable value has collapsed.


90 Second Lesson: Personal Liability for Unpaid Taxes in Insolvency Cases

Editors’ Note: this is part of our irregular series in which we answer readers’ questions. If you have a question, submit it to info@dailydac.com and we will try to answer it. QUESTION: Who can be liable for a chapter 11 debtor’s unpaid taxes? ANSWER: One or more persons, including a fiduciary, may be subject to […]


90 Second Lesson: Application of Federal Tax Laws in Insolvency Cases

Editors’ Note: this is part of our irregular series in which we answer readers’ questions. If you have a question, submit it to info@dailydac.com and we will try to answer it. QUESTION: Are insolvent or bankruptcy debtors exempt from federal income tax laws? ANSWER: In general, neither the Internal Revenue Code nor the Bankruptcy Code […]


RECOMMENDED READING: Tell the Tax Man How It Will Be – A Primer on Federal Tax Liens

In his article,“Secured Lender Primes Earlier Federal Tax Lien in Fourth Circuit Split Decision,” Michael L. Cook of Schulte Roth & Zabel presents a learned and immediately useful nutshell account of how federal tax liens work — in itself a major service to non-specialist legal and financial professionals.  Having provided that understanding, Cook shows how […]


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