Specifically, H.B. 103 allows a new owner to take a business without assuming the seller's liabilities if the buyer receives a certificate of compliance from the seller showing the seller has not received notice of audit, has filed all required tax returns, and has paid the tax due from those returns, and that there are no “insiders in common” between the buyer and seller.
- Transfer of Tax Liability
- Revises provisions relating to tax liability when person transfers or quits business
- provides transfer of assets of business or stock of goods of business is considered transfer of business
- requires DOR to notify business before circuit court temporarily enjoins business activity
- provides liability for certain taxes unless specified conditions are met
- requires department to conduct certain audits
- requires DOR to notify transferee before circuit court enjoins business activity
- specifies that transferor & transferee of assets of business are jointly & severally liable up to maximum amount
- specifies maximum liability of transferee
- provides methods for calculating fair market value or total purchase price of specified business transfers to determine maximum tax liability of transferees
- excludes transferees from tax liability when transfer consists only of specified assets
- authorizes DOR to provide tax information to transferee against whom tax liability is being asserted
- repeals provisions relating to tax liability & criminal liability of dealers of communications services who make certain transfers related to communications services business
- repeals provisions relating to dealer's tax liability & criminal liability for sales tax when business transferred.
Read more at: Tax Times blog