Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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S

535.0000 SUCCESSOR'S LIABILITY—Regulation 1702

Annotation 535.0087

535.0087 Purchase from Probate Estate. An inquiry was received regarding whether successor's liability can be asserted against a person who bought a business from a probate estate. It appeared that the property purchased was inventory. It was also noted that the estate did not operate the business.

It is concluded that the Legislature intended that Probate Code section 707.5 to be the sole and exclusive method for settling debts of decedents, and that attempting to inject successor's liability would interfere with the orderly administration of probate estates. In addition, the language of section 6811 prohibits the imposition of successor's liability in probate estates. This section requires that the delinquent taxpayer must either sell or quit the business before successor's liability arises. Since death prevented a sale or a quitting of the business, no seller/purchaser relationship existed prior to death and probate administration. Therefore, a purchase from a probate estate does not result in successor's liability. 7/8/80.