Or. Admin. Code § 150-305-0094

Current through Register Vol. 63, No. 12, December 1, 2024

Section 150-305-0094 - Cancellation of Liabilities Discharged in Bankruptcy

(1) Generally, all tax liabilities which are discharged in a bankruptcy proceeding under the Bankruptcy Reform Act of 1978 shall be cancelled upon the Department's records. The Department shall issue an order cancelling the tax, penalty and interest on such liabilities and all liens of record shall be released.

(2) An exception to this general policy will be made when the department has a recorded lien on real property retained by the taxpayer after the bankruptcy proceeding is closed. Although the department is stayed from taking collection action on the account, nothing prevents the department from receiving payment, as one of the property lienholders, at the time the taxpayer disposes of the property. If the department determines a sufficient opportunity exists to collect state debt at some point in the future, the account will not be canceled nor will the lien be released.

RD 16-1982, f. 12-6-82, cert.ef. 12-31-82; RD 10-1984, f. 12-5-84, cert. ef. 12-31-84; RD 4-1991, f. 12-30-91, cert. ef. 12-31-91; Renumbered from 150-305.155(1)(d), REV 48-2016, f. 8-13-16, cert. ef. 9/1/2016

Stat. Auth.: ORS 305.100

Stats. Implemented: ORS 305.155