Business Taxes Law Guide – Revision 2013
 

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C

170.0000 COLLECTION OF TAX BY BOARD

Annotation 170.0002.500

(a) IN GENERAL

170.0002.500 Cancellation of Determination—Refund of Payments. On June 25, 1987 taxpayer filed a Chapter 11 bankruptcy. The Board issued a Notice of Determination on November 24, 1987 based on a deficiency disclosed by audit for the period January 1, 1984 to June 24, 1987. The taxpayer received a bankruptcy discharge on September 6, 1991. The Board received bankruptcy distribution and payments made by the taxpayer over the past three years.

The Notice of Determination was issued during a period when the bankruptcy "automatic stay" was in effect and, therefore, should be canceled pursuant to section 6981. However, with respect to payments made, the taxpayer is only entitled to file a claim for refund for any payments made within the period specified in section 6902. In this case, payments made within the previous six-month period may be refunded if a timely claim for such amounts is filed. 6/12/96.