A restaurant operator is stuck with an assessment of an additional $2.58 million in sales tax and penalties after the California Office of Tax Appeals found the company’s bankruptcy doesn’t pause the case.
East Coast Foods Inc., which operated four Roscoe’s House of Chicken’n Waffles restaurants in Los Angeles and Pasadena, filed for Chapter 11 bankruptcy protection while its challenges to California Department of Tax and Fee Administration tax bills were pending.
A three-judge panel rejected the company’s arguments that an automatic bankruptcy stay applies to business before the office, in a pending-precedential opinion released Monday.
Filing for bankruptcy effects ...
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