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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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C


170.0000 Collection of Tax by Board

Annotation 170.0001.150

(a) In General

170.0001.150 Bankruptcy Automatic Stay. A Notice of Determination was issued to a taxpayer (corporation) on February 14, 1991, with a timely petition for redetermination filed by the taxpayer for the periods covered by the Notice. On December 28, 1994, the taxpayer filed Chapter 11 bankruptcy. The taxpayer's Third Plan of Liquidation was ordered confirmed by the bankruptcy court on February 16, 1996, with the order entered on February 20, 1996. The Third Amended Plan of Liquidation provides, in part:

"Upon confirmation of the Plan the automatic stay is lifted as to property of the estate. However, the stay continues to prohibit collection or enforcement of pre-petition claims against the debtor or the debtor's property until the debtor receives a discharge, if any. Here, because the debtor is a corporation it does not seek and is not entitled to receive a discharge pursuant to section 1141(a). Therefore, a discharge of the debtor will be deemed denied, and the stay as to the debtor and the debtor's property will terminate upon entry of the order conforming the plan."

In this case the bankruptcy automatic stay was lifted on February 20, 1996, the date that the order confirming the Third Amended Plan of Liquidation was entered. At that time, the petition case could proceed and be scheduled for a hearing before the Board. 8/01/96.