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Business Taxes Law Guide—Revision 2024
Sales and Use Tax Annotations
A B C D E F G H I J L M N O P R S T U V W X
C
170.0000 Collection of Tax by Board
Annotation 170.0000.400
(a) In General
170.0000.400 Amounts Under Petition. A notice of determination was issued against a taxpayer and the taxpayer filed a timely petition for redetermination. Later, the taxpayer filed Chapter 7 bankruptcy. Under 11 U.S.C sections 507(a)(7)(ii), 523(a)(1)(A), taxes measured by gross receipts that are "assessed" within 240 days of filing bankruptcy are nondischargable. In California for purposes of section 507(a)(7)(A)(ii), a tax is "assessed" when it becomes "final." Since taxpayer's liability has not become final and, thus, has not been assessed for purposes of the federal bankruptcy action, it has not been discharged in the Chapter 7 bankruptcy action. 4/7/97.