Michael J. Montemurro, branch chief of the Office of Associate Chief Counsel of the IRS, wrote to a congressman regarding his constituent’s question: “If the 1031 exchange intermediary I am using goes into bankruptcy and I cannot complete the exchange on time, am I on the hook for the taxes on this failed exchange?”1

Mr. Montemurro stated that current law grants no extension in the case of a bankruptcy. The law authorizes the IRS to extend the deadline for Section 1031 ... Log in to view full article.