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BTLG Table of Contents > Sales and Use Tax Annotations > C > 170.0000 Collection Of Tax By Board > Annotation 170.0007.002

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C

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170.0000 Collection of Tax by Board

Annotation 170.0007.002

(a) In General

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170.0007.002 Discharge in Bankruptcy. Taxpayer filed a Chapter 7 "no asset" bankruptcy action on November 17, 1993 and was subsequently discharged on March 23, 1995. The taxpayer was issued a Notice of Successor Liability on January 27, 1995 as a result of the taxpayer's purchase of assets from a corporation, the predecessor to the taxpayer, pursuant to an agreement dated August 28, 1992.

Even though the tax was not assessed against the taxpayer prior to the filing of his bankruptcy petition, liability is still entitled to priority since the "transaction" (i.e., the purchase of the corporate assets) had not occurred more than three years before the taxpayer filed his bankruptcy petition. (11 U.S.C. sections 507(a)(8)(E) and 523(a)(1)(A)). Therefore, the filing of the bankruptcy petition and subsequent discharge did not discharge the taxpayer's successor liability whether or not a claim for such tax was filed or allowed. 8/01/96.