Partnerships in Bankruptcy & Related Tax Law Issues

The filing requirements for a partnership in bankruptcy proceedings do not change. However, the filing of required returns becomes the responsibility of an appointed trustee, receiver, or a debtor-in-possession rather than a general partner.

A partnership’s debt that is canceled because of bankruptcy is not included in the part-nership’s income. It may or may not be included in the individual partners’ income. See Partnerships, later under Debt Cancellation.

Last reviewed October 2024