Rev. Rul. 62-96

The Internal Revenue Service will not claim non-pecuniary loss penalties in proceedings under the Bankruptcy Act, whether or not secured by Federal tax liens. See 11 U.S.C. 93j. It will not claim post-petition interest (whether or not secured by Federal tax liens) in proceedings under the Bankruptcy Act, or in general receivership or assignment for the benefit of creditor cases.

However, it will claim both penalties and post-petition interest when an estate proves to be solvent or when such liabilities arise in connection with the administration of the estate.

The Service will continue to enforce collection of penalties and post-petition interest from any property or rights to property subject to the Federal tax lien which are not under administration as part of an insolvent taxpayer's estate and from after-acquired property.

Further consideration will be given to the effect of this Revenue Ruling on G.C.M. 21860, C.B. 1940-1, 181, and to the publication of a more comprehensive Revenue Ruling in due time.

Amended regulations authorizing directors of regional service centers to assess and collect interest on underpayments. See T.D. 6585, page 290.

¹ Based on Technical Information Release 381, dated May 9, 1962.