In Re Richard BRACEY, Debtor. FRANCHISE TAX BOARD, STATE OF CALIFORNIA, Appellant, v. Richard BRACEY, Appellee

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…