Could the Board release a defunct corporate taxpayer's records to its bankruptcy trustee without a power of attorney or court order?

Plain-English summary

A question arose about releasing a corporate taxpayer's Board records to the trustee in bankruptcy after the corporation no longer existed.

California explained that 11 U.S.C. § 323(a) made the trustee the representative of the bankruptcy estate. The Board therefore could release taxpayer records relevant to that estate without requiring a power of attorney or court order.

On the stated facts, the trustee could access any Board records in the defunct corporation's file.

Source and live-annotation limits

The memorandum redacts the corporation and account number and does not identify the trustee or supply the bankruptcy petition, case number, estate, appointment, corporate-status evidence, record request, taxpayer file, relevance determination, records actually disclosed, confidentiality review, court filing, or later outcome. Its copied-recipient list ends with an instruction to promulgate and annotate. The source prints “bankrupcty”; that defect remains in the original text.

The live annotation preserves the trustee-representative rule, relevance limit, no-power-of-attorney/no-court-order result, and access for a corporation that no longer exists. It omits the named internal requester and author, redacted corporate matter, copied recipients and annotation instruction, missing records, source defect, and later-outcome gap.

What this means for you

Bankruptcy trustees and tax professionals

Document the trustee's appointment, the bankruptcy estate, and the connection between requested tax records and the estate. The opinion treated the trustee's statutory representative status as sufficient authority on these facts.

Common questions

Q: Was a power of attorney required?

A: No.

Q: Was a separate court order required?

A: No.

Q: Why could the trustee obtain the records?

A: The trustee represented the bankruptcy estate under 11 U.S.C. § 323(a).

Citations and references

• 11 U.S.C. § 323(a)
• Trustee appointment, bankruptcy petition and estate records, corporate-status evidence, record request, taxpayer file, and relevance determination — described or referenced but not included

Verbatim support

From the official September 17, 1997 memorandum:

Consequently, the Board may release any taxpayer records that are relevant to the bankrupcty estate to the trustee in bankruptcy without either a power of attorney or a court order.

In the present situation, where the corporation no longer exists, the trustee in bankruptcy may have access to any Board records in P---’s file.

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Annotation page: Annotation 365.0045
• Original supporting opinion: 365.0045 PDF

Original ruling text

State of California

Board of Equalization

Memorandum

To:

Mr. Rick Slater, Supervisor
Special Procedures Section

From:

Ani Kindall
Senior Tax Counsel

Subject:

Release of Taxpayer’s Records to a Trustee in Bankruptcy P--- Inc. SR -- XX-XXXXXX

365.0045
Date:

September 17, 1997

A question has arisen in the above referenced matter regarding the release of the taxpayer’s records to the trustee in bankruptcy. A trustee in a bankruptcy is the representative of the bankruptcy estate (11 U.S.C.
§ 323(a)). Consequently, the Board may release any taxpayer records that are relevant to the bankrupcty estate to the trustee in bankruptcy without either a power of attorney or a court order. In the present situation, where the corporation no longer exists, the trustee in bankruptcy may have access to any Board records in P---’s file. If you have any question, please call me at 324-2195. Ani Armen Kindall cc:

Mr. James Speed
Ms. Sue Coty
Ms. Mary Armstrong
Mr. Gary Jugum
Ms. Janet Vining
Mr. Tom Cooke
Mr. Greg Day
Mr. A. Dewey Roberts
Ms. Kathleen Silva
Ms. Stephanie Cervantes
Ms. Theresa Lane
Ms. Wendy Keethe
Ms. Barbara Lee
Mr. Dennis Fox – please promulgate, annotate