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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15437
Experience:  15years with H & R Block. Divisional leader, Instructor
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We are looking at purchasing a business that apparently has

Customer Question

We are looking at purchasing a business that apparently has not filed taxes for two years now. Who will be responsible for paying those taxes, the seller or the buyer?
Submitted: 4 years ago.
Category: Tax
Expert:  Robin D. replied 4 years ago.
Robin D :

Hello and thank you for using Just Answer,
Depending on the type of business entity and the taxes that have not been filed, the new owner(s) may be held responsible for the tax of the business. In order to avoid the liability , a purchaser should take care to give the taxing jurisdiction adequate notice that a sale is about to occur.


If you are buying a business, you may request a "Tax Status Letter" about the business from the Department of Revenue. The letter indicates the Department’s current information regarding the standing of the business, tax payments and tax delinquencies. Complete a "Request for Tax Status Letter" (DR 0096). The fee is $7 per tax. The seller of the business may request the letter for the buyer or the buyer may request the letter with a power of attorney from the seller.

Robin D :

I thank you in advance for a positive rating which will let Just Answer know that you have been assisted.

Expert:  Robin D. replied 4 years ago.

Customer Last Viewed Today at 10:55
The system advised you viewed but you may not have bee able to see the answer in the CHAT mode because you did not rate or ask any followups. Here is a copy:

Robin D :

Hello and thank you for using Just Answer,
Depending on the type of business entity and the taxes that have not been filed, the new owner(s) may be held responsible for the tax of the business. In order to avoid the liability , a purchaser should take care to give the taxing jurisdiction adequate notice that a sale is about to occur.

If you are buying a business, you may request a "Tax Status Letter" about the business from the Department of Revenue. The letter indicates the Department's current information regarding the standing of the business, tax payments and tax delinquencies. Complete a "Request for Tax Status Letter" (DR 0096). The fee is $7 per tax. The seller of the business may request the letter for the buyer or the buyer may request the letter with a power of attorney from the seller.

Robin D :

I thank you in advance for a positive rating which will let Just Answer know that you have been assisted.