Find information on what information should be reported to our office if your business is closing.
Going out of Business?
A wholesale merchant or retailer who sells or transfers the major part of its stock of goods, materials, supplies or fixtures, other than in the ordinary course of business, or who goes out of business, must:
- Notify the Department of Tax Administration at least 48 hours prior to the date of the pending sale, transfer or termination of business
- Within 30 days of the sale, transfer or termination of business, pay all taxes due or to become due on the transferred property on the first day of September of the current calendar year.
Any person to whom the major part of the stock of goods, materials, supplies or fixtures of a wholesale merchant or retailer is sold or transferred, or who becomes the successor in business, is required to withhold from the purchase money paid to the merchant an amount sufficient to pay the taxes due or to become due on the transferred property on the first day of September of the current calendar year. These funds should not be released until the former owner or seller produces either a receipt from the Department of Tax Administration showing the taxes have been paid or a certificate that no taxes are due. If the purchaser or successor in business fails to withhold a sufficient amount and the taxes remain unpaid after the 30-day period allowed, the purchaser or successor is personally liable for the amount of unpaid taxes.