In Re Richard BRACEY, Debtor. FRANCHISE TAX BOARD, STATE OF CALIFORNIA, Appellant, v. Richard BRACEY, Appellee
Opinion
Opinion
The California Franchise Tax Board (FTB) appeals the decision of the Bankruptcy Appellate Panel (BAP), holding that the FTB violated 11 U.S.C. § 524 by attempting to collect delinquent prepetition taxes from former Chapter 7 debtor Richard Bracey. We have jurisdiction, 28 U.S.C. § 158 (d), and we affirm in part and reverse in part.
I
On February 23, 1988, the FTB sent Bra-cey a notice of proposed tax assessments for the tax years 1983 and 1984. In response, Bracey’s attorney sent a letter of protest dated April 21, 1988. Although the cover letter accompanying Bracey’s protest referred to both the 1983 and 1984 assessments, the protest itself addressed only the 1984 assessment. Bracey did not sign the protest himself. He had, however, previously sent a letter to the FTB giving power of attorney to his lawyer. The FTB received Bracey’s protest on May 5, 1988.
On June 16, 1989, Bracey filed a voluntary petition for Chapter 7 bankruptcy. He obtained a debtor’s discharge on October 24, 1989. Subsequently, the FTB notified Bra-cey of its intent to collect the taxes assessed and due for the 1983 and 1984 tax years. Bracey responded by filing a motion in the bankruptcy court, seeking…