Laws, Regulations and Annotations

Search

BTLG Table of Contents > Sales and Use Tax Annotations > C > 170.0000 Collection Of Tax By Board > Annotation 170.0002.075

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 170.0002.075

(a) In General

---

170.0002.075 Bankruptcy—Pre-Petition Lien. Generally, a self-assessed tax liability will be "dischargeable" in a taxpayer's bankruptcy if it had been "due and payable" more than three years prior to the filing of the taxpayer's bankruptcy petition. (11 U.S.C. sections 523(a)(1)(A); 507(a)(8)(A).) However, even if a tax liability becomes dischargeable, a tax lien filed pre-petition survives a taxpayer's discharge if the lien attaches pre-petition to the property owned by the taxpayer. (In re Carlson 292 F.Supp. 778 (1968).)

Also, if a tax liability has been discharged in a taxpayer's bankruptcy proceeding, the Board may extend a pre-petition lien pursuant to Government Code section 7172(c) only if (1) the original lien attached pre-petition to property owned by the taxpayer, (2) the taxpayer continues to own the pre-petition property at the time that the lien is to be extended, and (3) the extension of the lien is restricted to the pre-petition property owned by the taxpayer. A pre-petition lien does not attach to after-acquired property when the taxpayer has received a discharge of the tax liability. (California State Board of Equalization v. Carlson (1970) 423 F.2d 715). 8/29/95.