Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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Annotation 170.0007.003


170.0007.003 Discharge in Bankruptcy. On December 7, 1993, a Jeopardy Notice of Determination was issued against the taxpayer (a corporation) for the period July 1, 1990 to September 30, 1993. The taxpayer filed a timely petition for redetermination and posted security equal to the determined liability. A protective claim for refund was later filed by the taxpayer in the amount of the security posted. On January 10, 1994, the taxpayer filed Chapter 11 bankruptcy. The taxpayer's plan of reorganization was confirmed by order of the bankruptcy court on December 28, 1995.

Since there were no provisions in the taxpayer's plan or in the order confirming the plan which modify the date that the "automatic stay" is lifted by statute, the taxpayer's "automatic stay" was lifted when the order confirming the taxpayer's plan was entered. The Board may now resolve the taxpayer's determined liability and claim for refund. The taxpayer's determined liability has not become "due and payable" or "final" under California law and, therefore, has not been discharged in the taxpayer's bankruptcy action. 8/28/96.