A Chapter 11 reorganization plan must provide for payment of tax claims over a five-year period.

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According to the Bankruptcy Code, a Chapter 11 reorganization plan must provide for payment of tax claims over a period of five years. This requirement helps ensure that the government receives at least some portion of the taxes owed by the debtor, while also giving the debtor an opportunity to get back on more stable financial footing. Failure to comply with this requirement can result in the plan being rejected by the court, or in other penalties or sanctions for the debtor.

A Chapter 11 Reorganization Plan Must Provide for Payment of Tax