Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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R

465.0000 REMEDIES OF TAXPAYERS

Annotation 465.0017

(a) REDETERMINATIONS

465.0017 Person Directly Interested—Section 6561. A predecessor sold a business to a successor who subsequently defaulted on the purchase price. The predecessor filed suit and obtained a court order for appointment of a receiver. The receiver sold the business and, except for the liquor license, the proceeds of the sales were distributed to creditors. A notice of successor liability was issued against the successor and the Board placed a withhold on the liquor license to prevent its transfer since it was the only remaining asset available to satisfy the notice of successor liability.

The predecessor filed a petition for reconsideration of the notice of successor liability issued to the successor, contending that he qualifies as an interested party since he is the "directly benefited creditor." The predecessor will receive the proceeds from the sale of the liquor license.

Under the facts described, the predecessor is a person directly interested in the notice of successor liability issued against the successor. Any amounts remaining from the liquor license sale proceeds, after payment of the determination, will be available to satisfy the liability the successor owes to the predecessor. Thus, the predecessor may file a petition for reconsideration and may be given information as to the items included in the measure and amounts of any unpaid tax or amounts of tax required to be collected, interest, and penalties. 10/2/89.