Iowa Senator Chuck Grassley and Minnesota Senator Al Franken have introduced legislation to reverse the 2012 Hall versus United States Supreme Court ruling - which makes it difficult for family farmers to reorganize their finances during hard times.

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The Family Farmer Bankruptcy Clarification Act of 2015 clarifies bankrupt family farmers reorganizing debts are able to treat capital gains taxes owed to a governmental unit as general unsecured claims. The legislation also eliminates the IRS’ veto power over a bankruptcy reorganization plan’s confirmation.

Franken says this bipartisan bill is a commonsense fix to ensure the law is carried out as it was intended. If passed - he says it will help ensure farmers who have to go through bankruptcy can keep their land and repay their debts.

Source:  NAFB

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