22. Changes in Treatment of Taxes

Taxes related to a fraudulent return or that the debtor attempted to evade are made non-dischargeable in Chapter 11. The debtor is required to pay administrative tax claims whether or not the government files a “request”. The new law requires periodic cash payments of priority tax under Chapter 11 over not more than five years from the petition date and, in any event, under terms not less favorable than those accorded to the most preferred unsecured non-priority creditors (excluding “nuisance” claim payments). The rate of interest on tax claims is the rate specified under applicable non-bankruptcy law.