(a)     Monthly Statements of Operation Required in Chapter 7 (Operating) and Chapter 11 Cases. The operating reports mandated by 11 U.S.C. 704(8) and 1106 must be filed monthly, and, in addition to being filed directly with the court, the United States trustee and any governmental unit charged with responsibility for collection or determination of any tax arising out of the operations, shall be served upon any official committee or its attorney.

                    (1)     Signature. The operating reports filed in accordance with subsection (a)(1) of this rule must bear an original signature of the debtor or of the chapter 7 or chapter 11 trustee, verifying the accuracy of the information contained therein.

                    (2)     Failure to File Monthly Operating Reports. Failure to file the required operating reports may be cause for the court to deny any affirmative relief sought by the debtor including, but not limited to, approval of a pending disclosure statement as provided by Local Bankruptcy Rule 3016-2 and confirmation of a plan.

          (b)     Reporting Requirements for Chapter 12 and 13 Debtors Engaged in Business. In the event the debtor engages in the operation of a business enterprise, including a family farm pursuant to 11 U.S.C. 1201, as a result of which the debtor is required to collect taxes or for which the debtor incurs tax liabilities in the ordinary course of the operation of the debtor's business, the debtor shall:

                    (1)     file with the trustee's office, a summary of business operations on such form as promulgated by the trustee or a copy of their most recent federal tax return when requested by the trustee and in such intervals as required by the trustee;

                    (2)     maintain a bank account which serves solely as a separate tax account (the Tax Account) for the deposit of all tax funds (including, but not limited to, funds held in trust for employee's withholding taxes, sales taxes and employer business taxes, with the exception of income taxes) which may be collected by the debtor and for which the debtor may become liable during the pendency of this case. Such tax funds are to be withdrawn from the Tax Account only for the remittance to the appropriate taxing authority or to a federal tax depository, and, the debtor shall provide proof of compliance to the trustee upon request;

                    (3)     within two business days from the date on which any salaries are paid to the debtor's employees, deposit that portion of such salaries as is required to be withheld for social security taxes and the employer's portion of social security taxes and disability and unemployment insurance taxes to the Tax Account, and, the debtor shall provide proof of compliance to the trustee upon request;

                    (4)     in those cases in which the debtor is required to collect sales taxes, deposit the sales taxes in the Tax Account not later than the Monday following each week for that week's sales tax liability, and, the debtor shall provide proof of compliance to the trustee upon request;

                    (5)     deposit any other taxes which the debtor is required to collect, or for which the debtor incurs liability in the ordinary course of the operation of the debtor's business (such as federal excise taxes) into the Tax Account no later than Wednesday of the week following the week in which such taxes were collected or in which the liability was incurred, and, the debtor shall provide proof of compliance to the trustee upon request;

                    (6)     during the pendency of the case, timely file all required federal and state tax returns and within three days of filing the return forward copies of such returns to the Internal Revenue Service and to the New York State Department of Taxation and Finance/Bankruptcy Section; and

                    (7)     during the pendency of the case, make required periodic deposits of federal and state taxes to a tax depository and provide the appropriate taxing authority with verification that such deposits were made within three days from the date of any such deposit.
 
 

          This rule addresses the requirement of filing monthly operating reports in chapter 7 cases when a business is authorized to be operated, in chapter 11 and 12 cases and in chapter 13 business cases.

          Tax returns and tax payment shall be remitted to the Internal Revenue Service at Internal Revenue Service, Attn: Special Procedures Function, Leo O'Brien Federal Building, Clinton Avenue & North Pearl Street, Albany, New York 12207, (if the case is under the jurisdiction of the Buffalo Special Procedures, the address is Internal Revenue Service, Attn: Special Procedures Branch, P.O. Box 266, Niagara Square Station, Buffalo, New York 14201), and to the New York State Department of Tax and Finance/Bankruptcy Section-Special Procedures at Building 21, P.O. Box 5300, Albany, New York 12205-0300. These addresses are subject to change and should be verified prior to remittance.