Greater Southeast Community Hospital Cor and Doctors Community Healthcare Corporation

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF COLUMBIA
In re
GREATER SOUTHEAST COMMUNITY
HOSPITAL CORPORATION I, et
al.,
Debtors.
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Case No. 02-02250
(Chapter 11)
(Jointly Administered)
Not for Publication in
West’s Bankruptcy Reporter
MEMORANDUM DECISION AND ORDER
DIRECTING DCHC LIQUIDATING TRUST TO ADDRESS ISSUES
RE MOTION OF THE DCHC LIQUIDATING TRUST SEEKING AN ORDER
ESTABLISHING PROCEDURES AND DEADLINES CONCERNING IRS W-9
FORMS AND REDISTRIBUTION OF FUNDS FROM NONRESPONDING CREDITORS
This addresses the Motion of the DCHC Liquidating Trust
Seeking an Order Establishing Procedures and Deadlines Concerning
IRS W-9 Forms And Redistribution of Funds from Nonresponding
Creditors (Document No. 3445 on the court’s docket) (the
“Motion”). 	I have spotted issues that preclude my granting the
Motion until the DCHC Liquidating Trust has addressed the
following issues and convinced me that modifications to the
relief requested by the Motion are not warranted.
1. 	In the proposed letter to holders of claims, the
language "within ninety (90) days of the date of this letter"
The document below is hereby signed. Dated:
September 29, 2008.
_____________________________
S. Martin Teel, Jr.
United States Bankruptcy Judge
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1 	For example, if the letter is dated October 3, 2008 (in
which case the 90th day thereafter would fall on January 1,
2009), the deadline would be bumped under Rule 9006(a) to the
next day, Friday January 2, 2009. 	In that example, the first
sentence containing the problematic language would be changed to
read “Prior to making any distributions, we are therefore
requesting that you complete and return the attached IRS Form W-9
so that it is received by the Trust by January 2, 2009.”
2 	For example, many wage earners’ proofs of claim probably
included a Social Security Number on the proof of claim because
the Official Form at that time elicited the creditor’s Social
Security Number for a claim for wages, salaries, or compensation.
To the extent that such a claim included any non-priority claims,
the creditor would be amongst the general unsecured creditors
receiving the letter. 	Why should such a creditor be required to
supply a Social Security Number when it was supplied already?
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appears twice. 	This language puts each holder of a claim to the
necessity of computing the date on which the 90-day deadline
falls, when the letter itself could set forth that date. 	Why
should creditors be put to that burden? 	Ought not the quoted
language be changed to read “by [the deadline date]” with the
deadline date having been computed in accordance with Fed. R.
Bankr. P. 9006(a)? 1
2. 	If a creditor included a taxpayer identification number
on the proof of claim, why should that creditor be required to
submit a Form W-9? 2
3. 	If the distributions to a creditor in any taxable year
would be less than $600, the distributions would not constitute
“reportable payments” under 26 U.S.C. § 6041(a) and no Form W-9
would be required in order to absolve the Trust of any
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responsibility to withhold taxes, as the withholding requirement
is inapplicable when the payment is not a “reportable payment.”
Why should a creditor who is to receive less than $600 in
distributions in the taxable year of the distribution be required
to submit a Form W-9? 	If a creditor’s proof of claim is for less
than $600, why ought that creditor ever be required to submit a
Form W-9?
It is
ORDERED that at the hearing on the Motion, the DCHC
Liquidating Trust shall address the foregoing issues. 	It is
further
ORDERED that the hearing on the Motion (Document Number
3445) is continued to Friday October 3, 2008, at 10:30 a.m.
[Signed and dated above.]
Copies to: Andrew M. Troop, Esq.; Ted Berkowitz, Esq.; Peter D.
Isakoff, Esq.; Sam J. Alberts, Esq.; Office of U.S. Trustee.
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