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Deposit of Interpleader Funds (28 U.S.C. § 1335)

Wednesday, March 29, 2017

Interpleader funds deposited under 28 U.S.C. § 1335 meet the IRS definition of a “Disputed Ownership Fund” (DOF), a taxable entity that requires tax administration. Pursuant to General Order 2016-06, unless otherwise ordered by the court, interpleader funds shall be deposited in the DOF established within the Court Registry Investment System (CRIS) and administered by the Administrative Office of the United States Courts, which shall be responsible for meeting all DOF tax administration requirements 
Effective April 1, 2017, the court will be using the following two (2) new filing events to track these DOFs in CM/ECF: 
Motion for Interpleader Deposit (28 U.S.C. Section 1335). Please note, when selecting this event, the filer will be prompted to answer the question whether “. . . you anticipate interim disbursements of funds for case expenses before the court determines the ownership of the funds?” The response (Y/N) will appear in the docket text and is important as it will determine how the funds are invested and will have certain tax reporting implications. 
Motion for Interpleader Disbursement (28 U.S.C. Section 1335)  
 Motions for deposits and disbursements of other funds with the court should be filed using the “Motion to Deposit Funds” and “Motion for Disbursement of funds “ filing events. Please contact the ECF Helpdesk with any questions at (866) 822-8305.

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