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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 170.1250

(b) Liability of Corporate Officer

170.1250 Discharge in Bankruptcy. The Board issued two determinations in October 1990 for taxes against a corporate officer for a tax liability arising out of operations of the corporation during the period the corporation had been suspended by the Franchise Tax Board. The determinations included periods in 1982 through 1984. The taxpayer had filed bankruptcy on August 27, 1989 and discharge was granted on December 2, 1989. Neither the corporation nor the corporate officer had filed tax returns for the period involved.

The corporate officer is liable for the tax. Tax liabilities for which a return was not filed as required are not discharged in the bankruptcy. Even if returns were filed, the taxes would not have been discharged unless the corporate officer listed the Board as a creditor or the Board had knowledge of the bankruptcy in time to file a claim. 10/2/95.