Laws, Regulations and Annotations
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Business Taxes Law Guide—Revision 2024
Sales and Use Tax Annotations
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410.0000 Permits—Regulation 1699
Annotation 410.0194
(a) In General
410.0194 Notice to the Board. A partnership was dissolved by written agreement and a notice of dissolution was published in a newspaper of general circulation. No actual notice of dissolution was given to businesses which had direct dealings with the partnership. One of the partners was, by agreement, to continue the business as a sole proprietor and pay all the bills.
A notice of dissolution published in a newspaper does not constitute notice to the Board as set forth in Regulation 1699(e). In Credit Bureaus of Merced County v. Shipman, 167 C.A. 2d 673 (1959), the court held that "… as to firms having prior credit dealings, with the partnership, actual notice of dissolution is necessary. While publication may be evidence from which actual knowledge could be inferred, publication above would not compel a finding of actual knowledge. A retiring partner is not justified in placing sole reliance upon the publication of notice of dissolution, but should assure himself that existing creditors who have extended credit to the partnership receive actual notice of such dissolution." As the State of California is, in effect, a creditor, it should receive actual notice of a partner's leaving the partnership before that retiring partner is relieved of his personal liability for the debts of the partnership. In order to avoid predecessor liability, actual notice must be given to the Board. 7/23/79.