Successor's Liability

Section 63-3628, Idaho Code 01. Making Inquiries. When a vendor sells out their business or stock of goods, the buyer is to make an inquiry of the Tax Commission and withhold from the purchase price any amount of tax that may be due until such IDAHO ADMINISTRATIVE CODE IDAPA 35.01.02 State Tax Commission Idaho Sales & Use Tax Administrative Rules Section 120 Page 71 time as the vendor, seller, produces a receipt stating that no tax is due. If the buyer fails to withhold from the purchase price the tax due, they become personally liable for the tax. (7-1-26) 02. Written Inquiry. The buyer is to make a written inquiry to the Boise Office of the State Tax Commission setting forth the following: (7-1-26) a. The name, location, and seller’s permit number of the business they are purchasing. (3-31-22) b. A statement that they are purchasing the business or stock of goods. (3-31-22) c. An inquiry as to any sales or use tax liability of the business they are purchasing. (3-31-22) 03. Copy of Earnest Money. The buyer is to attach to the written inquiry a copy of any earnest money or similar agreement already entered into with the prospective seller. If no earnest money agreement has been entered into, then the seller will provide written authorization to the Tax Commission to release the information to the prospective buyer. (7-1-26) 04. Written Statement from State Tax Commission. The Tax Commission, after receiving the written inquiry from the buyer as to the amount due, will issue a written statement to the buyer setting forth the amount of tax due by the seller, if any. The Tax Commission will advise the prospective buyer only of any amount of sales or use tax that may be due to the Tax Commission under the Sales Tax Act. The release of any other information isn’t authorized. In the case that the prospective buyer requests to see the prospective seller’s sales or use tax filing record in order to determine if the business is profitable, the prospective seller is to provide a Power of Attorney appointing the prospective buyer as attorney in fact to receive confidential information regarding sales or use tax filings on behalf of the prospective seller. (7-1-26) 05. Application for Seller's Permit Number. Upon final sale, the buyer files an application Form IBR-1 for a new seller’s permit number with the Tax Commission. (7-1-26)