If at the time a business is discontinued the board holds security pursuant to Section 6701 in the form of cash, government bonds, or insured deposits in banks or savings and loan institutions, such security when applied to the account of the taxpayer shall be deemed to be a payment on account of any liability of the taxpayer to the board on the date the business is discontinued.
Cal. Rev. & Tax. Code § 6815
Payment on Termination of Business and Successor’s Liability
Applied in 1 court decision — leading case Taxel v. California State Board of Equalization (In Re Sluggo's Chicago Style, Inc.) (1988)
Most recently applied in Taxel v. California State Board of Equalization (In Re Sluggo's Chicago Style, Inc.) (December 1988)
Added by Stats. 1966, Ch. 5.
Official source: California Legislative Information. Reproduced from public-domain California statutes; confirm against the official source for the current text. Not legal advice.