Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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535.0000 SUCCESSOR'S LIABILITY—Regulation 1702

Annotation 535.0062

535.0062 Request for Tax Clearance. A taxpayer purchased the assets of Company A, inclusive of the right to do business under its name. When Company A ceased to do business, the taxpayer submitted a final return on behalf of Company A together with correspondence advising the Board that (1) the return was for the period October 1, 1989 through October 12, 1989; (2) taxes due for subsequent period(s) would be included in taxpayer's return(s); and (3) by agreement, payment of the sales tax related to the purchased assets was the responsibility of the taxpayer. The Board was requested to contact taxpayer should any additional questions arise.

Under sections 6811 and 6812, a taxpayer's request to the Board for a certificate that no taxes, interest, or penalties are due from the seller must be clear and unambiguous. Nowhere in taxpayer's letter to the Board is there an express or implied request for such certificate. The letter merely puts the Board on notice that taxpayer has purchased assets of the company. This clearly does not satisfy the requirements of section 6811 and 6812. Therefore, the letter cannot be accepted as a request for tax clearance. 1/5/94.