The Tax Division decides whether to appeal an adverse bankruptcy court decision, and Tax Division attorneys handle all appeals from such decisions. The United States Attorney’s Office should promptly notify the Chief of the appropriate Civil Trial Section and IRS counsel of any adverse bankruptcy court decision, and take all steps necessary to protect the Government's interest, including filing a notice of appeal. The time for appeal from an order of a bankruptcy court is only 14 calendar days, but the bankruptcy court may extend the time for an additional 21 days under certain circumstances. See Fed. R. Bankr. P. 8002. Given this short time limit, the United States Attorney’s Office should consider requesting an extension of time at the same time that he or she refers the matter to the Tax Division.

The United States Attorney’s Office should also promptly notify the Chief of the appropriate Civil Trial Section and IRS counsel if an adverse party appeals a decision favorable to the Government. The Tax Division also handles these appeals.

In jurisdictions where there is a Bankruptcy Appellate Panel, the United States Attorney’s Office should consult with the Chief of appropriate Civil Trial Section and determine whether the Government should elect to proceed in the district court rather than before the Bankruptcy Appellate Panel.

The court of appeals have discretionary jurisdiction, under some circumstances, to hear a direct appeal from a judgment or order of the bankruptcy court, bypassing a district court’s or Bankruptcy Appellate Panel’s intermediate review. 11 U.S.C. § 158(d)(2). This procedure is similar to the interlocutory appeal process under 28 U.S.C. § 1292(b). The Solicitor General must approve a direct appeal that the Government initiates under § 158(d)(2).

For the procedure regarding appeals from orders of a United States district court or Bankruptcy Appellate Panel to a court of appeals, see JM 6-5.700.

[updated February 2018]