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BTLG Table of Contents > Sales and Use Tax Annotations > C > 170.0000 Collection Of Tax By Board > Annotation 170.0007.004

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C

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170.0000 Collection of Tax by Board

Annotation 170.0007.004

(a) In General

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170.0007.004 Discharge in Bankruptcy. A taxpayer filed a Chapter 11 bankruptcy. The taxpayer's confirmed plan of reorganization included a provision that the debtor would be granted a discharge. It also called for the liquidation and dissolution of the taxpayer's business. Under 11 U.S.C. section 1141(d)(3), the confirmation of a plan does not discharge a debtor when the plan provides for the liquidation of all or substantially all of the property of the estate, the debtor does not engage in business after consummation of the plan, and the debtor would be denied a discharge if the case were a Chapter 7 bankruptcy. Assuming that the taxpayer did not engage in business after the consummation of the plan, the tax liabilities were not discharged by the taxpayer's bankruptcy action despite a provision in the plan that the debtor would be granted a discharge. 4/8/98. (M99–2).