I. History of Tax Claims in Bankruptcy
C. Post-2005 Code
Much of section 1129 was left unchanged by 2005 act.The most important change for the purposes of this paper were introduced in section 1129(a)(9)(D).Subsection D introduced a new clause with main focus of requiring secured tax claims receive at least as favored treatment as a priority claim.This only applies to secured claims, which if not for its secured status, would have been classified as a priority claim.It grants such claims at least the same treatment as priority claims, including the same manner of payments, over the same period of time.
The revision introduced by the 2005 act left the majority of § 724 intact.While additional language is sprinkled throughout the section,most of it is explanatory,and meant to clarify the intent instead of changing the direction.Only after the main body, that keeps the same priority scheme as the pre-2005 code,are the new changes introduced. The first change places limitations on when the trustee can subordinate a tax lien,allowing it only after other options have been exhausted.In addition, ad valorem tax liens may be used to pay certain claims if other options have been spent.
The revision adopted two of the three suggestions set forth by the tax advisory committee.First, it adopted the proposal to stop the tolling of the 240-day window for offers in compromise.Second, it suspended tolling of the 240-day window for any periods of time in which collections are stayed.Only the third proposal, the clarification of the term assessment was not adopted.
 See generally 11 U.S.C. 1129 (2012).
 § 1129(a)(9)(D).
 See generally 11 U.S.C. 724 (2012).
 See § 724(b) (adding a parenthetical clarifying which property is subject to this section by excluding “properly perfected unavoidable [liens] arising in connection with an ad valorem tax.”)
 See § 724(b)(2) (excluding certain expenses).
 § 724(b).
 § 724(e).
 § 724(e)(1).
 § 724(f).
 11 U.S.C. 507 (2012).
 § 507(a)(8)(A)(ii)(I).
 § 507(a)(8)(A)(ii)(II).
 See generally § 507 (the term “assess” is not defined in the entirety of this section.)